Natural concentration in industrial research collaboration
AbstractEmpirical work suggests that the network of research and development alliances is asymmetric, with a small number of firms involved in the majority of partnerships. This paper relates the structure of the collaboration network to a fundamental characteristic of the demand for research output: the benefits of knowledge accumulation create private and social incentives for a concentration of collaborative activities. I theoretically investigate the formation of bilateral collaborative links in two different industry settings, one socially managed, the other oligopolistic. I find that in both cases a concentrated network is the typical equilibrium structure as well as the socially efficient structure.
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Bibliographic InfoPaper provided by Utrecht School of Economics in its series Working Papers with number 08-15.
Length: 36 pages
Date of creation: Jun 2008
Date of revision:
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Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-05 (All new papers)
- NEP-COM-2008-07-05 (Industrial Competition)
- NEP-CSE-2008-07-05 (Economics of Strategic Management)
- NEP-INO-2008-07-05 (Innovation)
- NEP-IPR-2008-07-05 (Intellectual Property Rights)
- NEP-KNM-2008-07-05 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2008-07-05 (Microeconomics)
- NEP-NET-2008-07-05 (Network Economics)
- NEP-PPM-2008-07-05 (Project, Program & Portfolio Management)
- NEP-SOC-2008-07-05 (Social Norms & Social Capital)
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