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Natural concentration in industrial research collaboration

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  • B. Westbrock
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    Abstract

    Empirical 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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    File URL: http://dspace.library.uu.nl/bitstream/handle/1874/31449/08-15.pdf
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    Bibliographic Info

    Paper provided by Utrecht School of Economics in its series Working Papers with number 08-15.

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    Length: 36 pages
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:use:tkiwps:0815

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    Keywords: R&D collaboration; market structure; networks;

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