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Research joint ventures in an international economy

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  • Massimo Motta

Abstract

D'Aspremont and Jacquemin's (1988) model is extended to study alternative configurations of research agreements in a two--country integrated world economy. Under unambiguous conditions on spillovers we show that: 1) Allowing national firms to cooperate in R\&D confers them an advantage over foreign rivals, an effect similar to R\&D subsidies. 2) In a policy game, each government would allow national cooperative agreements. 3) Contrary to other trade policies which lead to a ``prisoners' dilemma'' result, welfare in both countries increases when they both allow R\&D cooperation. 4) Welfare is even higher if a generalized (international) coalition is formed.

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Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 147.

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Date of creation: Nov 1995
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Handle: RePEc:upf:upfgen:147

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Web page: http://www.econ.upf.edu/

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Cited by:
  1. Leahy, Dermot & Neary, J Peter, 2004. "Absorptive Capacity, R&D Spillovers and Public Policy," CEPR Discussion Papers 4171, C.E.P.R. Discussion Papers.
  2. Morasch, Karl, 2000. "Strategic alliances: a substitute for strategic trade policy?," Journal of International Economics, Elsevier, vol. 52(1), pages 37-67, October.
  3. Rod Falvey & Khemarat Talerngsri Teerasuwannajak, . "Competitive and Harmonised R&D Policies for International R&D Alliances involving Asymmetric Firms," Discussion Papers 12/03, University of Nottingham, GEP.
  4. Aikaterini KOKKINOU, 2010. "Economic growth, innovation and collaborative research and development activities," Management & Marketing, Economic Publishing House, vol. 5(1), Spring.

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