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The evolution of R&D networks

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Author Info
Zirulia,Lorenzo (MERIT)

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Abstract

This paper models the formation of R&D networks in an oligopolistic industry. In particular, it focuses on the coevolutionary process involving firms’ technological capabilities, market structure and the network of interfirm technological agreements.The main result of the paper is that the R&D network can work as a strong selection mechanism in the industry, creating ex post asymmetries among ex ante similar firms. This is due to a self-reinforcing, path-dependent process, in which events in the early stages of the industry affect firms’ survival in the long run. In this framework, both market and technological externalities created by the formation of cooperative agreements play a crucial roe. Although the R&D network creates profound differences at the beginning, which are reflected by an unequal distribution of links, it tends to eliminate them as it becomes denser and denser. The nature of the technological environment affects the speed of the transition and some of the characteristics of the industry in the long run.

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Paper provided by Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology in its series Research Memoranda with number 007.

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Date of creation: 2004
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Handle: RePEc:dgr:umamer:2004007

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Keywords: industrial organization

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  1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December. [Downloadable!] (restricted)
  2. Sanjeev Goyal & Sumit Joshi, 2000. "Networks of Collaboration in Oligopoly," Tinbergen Institute Discussion Papers 00-092/1, Tinbergen Institute. [Downloadable!]
  3. Mowery, David C. & Oxley, Joanne E. & Silverman, Brian S., 1998. "Technological overlap and interfirm cooperation: implications for the resource-based view of the firm," Research Policy, Elsevier, vol. 27(5), pages 507-523, September. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. Martin L. Weitzman, 1998. "Recombinant Growth," The Quarterly Journal of Economics, MIT Press, vol. 113(2), pages 331-360, May. [Downloadable!] (restricted)
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  6. Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April. [Downloadable!] (restricted)
  7. Goyal, Sanjeev & Moraga-Gonzalez, Jose Luis, 2001. "R&D Networks," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 686-707, Winter.
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  8. Cowan,Robin & Jonard,Nicolas & Zimmermann,J-B, 2004. "On the creation of networks and knowledge," Research Memoranda 010, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  9. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
  10. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April. [Downloadable!] (restricted)
  11. Nigel Gilbert & Andreas Pyka & Petra Ahrweiler, 2001. "Innovation Networks - a Simulation Approach," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 4. [Downloadable!]
  12. Ozman,Müge, 2003. "Self-Organizing Inter-Firm Networks," Research Memoranda 022, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  13. Olsson, Ola, 2000. " Knowledge as a Set in Idea Space: An Epistemological View on Growth," Journal of Economic Growth, Springer, vol. 5(3), pages 253-75, September. [Downloadable!] (restricted)
  14. Michael L. Katz, 1986. "An Analysis of Cooperative Research and Development," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 527-543, Winter.
  15. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October. [Downloadable!] (restricted)
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