We examine how spillovers can circulate. More precisely, we study how spillovers can flow inside cooperation. We first present the standard conception that considers spillovers are market failures. In that case, cooperation allows internalising them. As the internalisation is partial, we propose an alternative conception. Because of the imperfect control of knowledge by the cooperation's contracts, we show that externalities can circulate inside this organisational form of governance.
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Find related papers by JEL classification: L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
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