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R&D Organization: Cooperation or Cross-Licensing?

Author

Listed:
  • Marie-Laure CABON-DHERSIN

    (Ecole Normale Supérieure de Cachan)

  • Rim LAHMANDI-AYED

    (Ecole Polytechnique de Tunisie)

Abstract

Under the Cross-Licensing system (CL), firms are allowed to trade non cooperatively the results of R&D efforts, and compete in the innovation and production stages. First, the paper proposes a simple modeling of this system. Second, a relevant comparison is made with the Cartelized Research Joint Venture (RJV), the form of R&D cooperation recognized to be the best one. We prove that the Cross-Licensing system may be socially better than the Cartelized RJV. In terms of antitrust policy, for firms, the most favorable collusion mode is Joint Exploitation. We prove that firms are equally tempted by this mode, whether they are under CL or under Cartelized RJV.

Suggested Citation

  • Marie-Laure CABON-DHERSIN & Rim LAHMANDI-AYED, 2011. "R&D Organization: Cooperation or Cross-Licensing?," Discussion Papers (REL - Recherches Economiques de Louvain) 2011012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvre:2011012
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    References listed on IDEAS

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    Cited by:

    1. Rune Stenbacka & Mihkel Tombak, 2020. "University‐firm competition in basic research and university funding policy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(4), pages 1017-1040, August.
    2. Chiara CONTI, 2013. "Asymmetric information in a duopoly with spillovers: new findings on the effects of RJVs," Departmental Working Papers 2013-04, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

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    More about this item

    Keywords

    Cross-Licensing; R&D cooperation; Cartelized Research Joint Venture; R&D spillovers; Efficiency; Antitrust policy;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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