AbstractWe develop a model of R&D competition and collaborationin which individual firms carry out independent in-house researchand also undertake joint research projects with other firms. Weexamine the impact of collaboration on in-house research andexplore the circumstances under which a hybrid organization ofR&D which combines the two is optimal for firms andsociety. We find that investments in independent research and injoint research are complementary: an increase in the number ofjoint projects also increases in-house research. Firm profits arehighest under a hybrid organization if the number of firms issmall (less than 5) while they are highest with pure in-houseresearch if the number of firms is large (5 or more). However,social welfare is maximized under a hybrid organization of R&D inall cases. Our analysis also yields new results on the role ofcooperative R&D. We find that non-cooperative decision making byfirms leads to larger R&D investments and higher social welfarethan fully cooperative decision making. However, a hybrid form ofdecision making where there is bilateral cooperation in jointprojects and non-cooperative decision making in in-house researchyields the highest level of welfare in concentrated industries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number EI 2003-34.
Date of creation: 07 Aug 2003
Date of revision:
Contact details of provider:
Web page: http://www.few.eur.nl/few
Other versions of this item:
- Sanjeev Goyal & Alexander Konovalov & Jose Luis Moraga-Gonzalez, 2003. "Hybrid R&D," Economics Discussion Papers 564, University of Essex, Department of Economics.
- Sanjeev Goyal & Alexander Konovalov & Jose Luis Moraga, 2003. "Hybrid R&D," Tinbergen Institute Discussion Papers 03-041/1, Tinbergen Institute.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Matthew O. Jackson & Asher Wolinsky, 1995.
"A Strategic Model of Social and Economic Networks,"
1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Dutta, B. & Nouweland, C.G.A.M. van den & Tijs, S.H., 2003.
"Link formation in cooperative situations,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-121826, Tilburg University.
- Dutta, B. & Nouweland, C.G.A.M. van den & Tijs, S.H., 1995. "Link formation in cooperative situations," Discussion Paper 1995-35, Tilburg University, Center for Economic Research.
- Dutta, B. & Nouweland, C.G.A.M. van den & Tijs, S.H., 1998. "Link formation in cooperative situations," Open Access publications from Tilburg University urn:nbn:nl:ui:12-77112, Tilburg University.
- Goyal, Sanjeev & Moraga-Gonzalez, Jose Luis, 2001.
RAND Journal of Economics,
The RAND Corporation, vol. 32(4), pages 686-707, Winter.
- Goyal, Sanjeev & Joshi, Sumit, 2003.
"Networks of collaboration in oligopoly,"
Games and Economic Behavior,
Elsevier, vol. 43(1), pages 57-85, April.
- Sanjeev Goyal & Sumit Joshi, 2000. "Networks of Collaboration in Oligopoly," Tinbergen Institute Discussion Papers 00-092/1, Tinbergen Institute.
- Sumit Joshi, 2000. "Networks of Collaboration in Oligopoly," Econometric Society World Congress 2000 Contributed Papers 0623, Econometric Society.
- Goyal, S. & Joshi, S., 2000. "Networks of Collaboration in Oligopoly," Econometric Institute Report EI 9952-/A, Erasmus University Rotterdam, Econometric Institute.
- Bruno Cassiman & Reinhilde Veugelers, 2002.
"R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium,"
American Economic Review,
American Economic Association, vol. 92(4), pages 1169-1184, September.
- Cassiman, Bruno & Veugelers, Reinhilde, 2002. "R&D cooperation and spillovers: Some empirical evidence from Belgium," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/101382, Katholieke Universiteit Leuven.
- Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-79, June.
- Kotaro Suzumura, 1990. "Cooperative and Non-cooperative R&D in Oligopoly with Spillovers," Discussion Paper Series a218, Institute of Economic Research, Hitotsubashi University.
- Carraro,Carlo & Siniscalco,Domenico (ed.), 1997. "New Directions in the Economic Theory of the Environment," Cambridge Books, Cambridge University Press, number 9780521590891, November.
- Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-306, December.
- Cassiman, Bruno & Veugelers, Reinhilde, 2002. "Complementarity in the innovation strategy: Internal R&D, external technology acquisition, and cooperation in R&D," IESE Research Papers D/457, IESE Business School.
- Hagedoorn, John, 2002. "Inter-firm R&D partnerships: an overview of major trends and patterns since 1960," Research Policy, Elsevier, vol. 31(4), pages 477-492, May.
- Cockburn, Iain M & Henderson, Rebecca M, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 157-82, June.
- Jeon, Doh-Shin & Menicucci, Domenico, 2009.
"Interconnection among Academic Journal Websites: Multilateral versus Bilateral Interconnection,"
IDEI Working Papers
579, Institut d'Économie Industrielle (IDEI), Toulouse.
- Doh‐Shin Jeon & Domenico Menicucci, 2011. "Interconnection among academic journal websites: multilateral versus bilateral interconnection," RAND Journal of Economics, RAND Corporation, vol. 42(2), pages 363-386, 06.
- Jeon, Doh-Shin & Menicucci, Domenico, 2009. "Interconnection among Academic Journal Websites: Multilateral versus Bilateral Interconnection," TSE Working Papers 09-102, Toulouse School of Economics (TSE).
- Vincent Vannetelbosch & Ana Mauleon & José Sempere-Monerris, 2005.
"R&D Networks Among Unionized Firms,"
2005.49, Fondazione Eni Enrico Mattei.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anneke Kop).
If references are entirely missing, you can add them using this form.