The Incentives to Form Research Joint Ventures: Theory and Evidence
Abstract
The literature on research joint ventures (RJVs) has emphasized internalizing spillovers and cost-sharing as motives for RJV formation. In this paper we develop two additional explanations: product market complementarities and firm heterogeneity. We analyze a model of RJVs with asymmetric firms and differentiated products. We then test these various explanations for RJV formation by estimating an endogenous switching model using data now available through the U. S. National Cooperative Research Act. ZUSAMMENFASSUNG - (Anreize, ein Forschungs-Joint Venture zu gründen) Die Literatur über Forschungs-Joint-Ventures (FJV) hat bisher die Internalisierung von Spillovers und die Kostenaufteilung als primäre Motive, ein FJV zu gründen, hervorgebracht. In diesem Beitrag werden zwei weitere Gründe angeführt: Produktmarktkomplementaritäten und Unternehmensheterogenitäten. Wir analysieren ein Modell über FJV mit asymmetrischen Unternehmen und differenzierten Produkten. Anschließend testen wir die verschiedenen Erklärungen, ein FJV zu gründen. Hierbei wird ein endogenes "switching" Modell geschätzt, in dem Daten von "U.S. National Cooperative Research Act" benutzt werden.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.Bibliographic Info
Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number FS IV 98-15.Length: 31 pages
Date of creation: Dec 1998
Date of revision:
Handle: RePEc:wzb:wzebiv:fsiv98-15
Contact details of provider:
Postal: Reichpietschufer 50, 10785 Berlin, Germany
Phone: (++49)(30) 25491-441
Fax: (++49)(30) 25491-442
Email:
Web page: http://www.wzb.eu/mp/wiw/default.en.htm
More information through EDIRC
Related research
Keywords: research & development; joint ventures; product market competition;References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reinganum, Jennifer F, 1983.
"Uncertain Innovation and the Persistence of Monopoly,"
American Economic Review,
American Economic Association, vol. 73(4), pages 741-48, September.
- Reinganum, Jennifer R., 1982. "Uncertain Innovation and the Persistence of Monopoly," Working Papers 431, California Institute of Technology, Division of the Humanities and Social Sciences.
- Richard J. Rosen, 1991.
"Research and Development with Asymmetric Firm Sizes,"
RAND Journal of Economics,
The RAND Corporation, vol. 22(3), pages 411-429, Autumn.
- Richard J. Rosen, 1988. "Research and development with asymmetric firm sizes," Finance and Economics Discussion Series 17, Board of Governors of the Federal Reserve System (U.S.).
- Nalebuff, Barry J & Stiglitz, Joseph E, 1983. "Information, Competition, and Markets," American Economic Review, American Economic Association, vol. 73(2), pages 278-83, May.
- Oliver D. Hart, 1983. "The Market Mechanism as an Incentive Scheme," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 366-382, Autumn.
- Kamien, Morton I & Zang, Israel, 1993. "Competing Research Joint Ventures," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 2(1), pages 23-40, Spring.
- De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February.
- Jacquemin, Alexis, 1988. "Cooperative agreements in R&D and European antitrust policy," European Economic Review, Elsevier, vol. 32(2-3), pages 551-560, March.
- Jorde, Thomas M & Teece, David J, 1990. "Innovation and Cooperation: Implications for Competition and Antitrust," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 75-96, Summer.
- Lee, Lung-Fei, 1979. "Identification and Estimation in Binary Choice Models with Limited (Censored) Dependent Variables," Econometrica, Econometric Society, vol. 47(4), pages 977-96, July.
- Irwin, Douglas A. & Klenow, Peter J., 1996.
"High-tech R&D subsidies Estimating the effects of Sematech,"
Journal of International Economics,
Elsevier, vol. 40(3-4), pages 323-344, May.
- Douglas A. Irwin & Peter J. Klenow, 1994. "High Tech R&D Subsidies: Estimating the Effects of Sematech," NBER Working Papers 4974, National Bureau of Economic Research, Inc.
- 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.
- Kogut, Bruce, 1989. "The Stability of Joint Ventures: Reciprocity and Competitive Rivalry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 183-98, December.
- 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.
- De Bondt, Raymond, 1997. "Spillovers and innovative activities," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/101206, Katholieke Universiteit Leuven.
- Shapiro, Carl & Willig, Robert D, 1990. "On the Antitrust Treatment of Production Joint Ventures," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 113-30, Summer.
- Vickers, John, 1995. "Concepts of Competition," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 1-23, January.
- Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-33, June.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Kaiser, Ulrich, 2001. "A simple game-theoretical framework for studying R&D expenditures and R&D cooperation," ZEW Discussion Papers 01-22, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Suetens, S., 2004.
"Literature review: R&D cooperation in oligopoly with spillovers: An experimental economics approach,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-3529827, Tilburg University.
- Suetens S., 2004. "Literature review: R&D cooperation in oligopoly with spill-overs: an experimental economic approach," Working Papers 2004024, University of Antwerp, Faculty of Applied Economics.
- Manuela Gussoni, . "The determinants of inter-¯rms R&D cooperation and partner selection. A literature overview," Discussion Papers 2009/86, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy.
- Marín, Pedro L. & Siotis, Georges, .
"Public Policies towards Research Joint Venture formation: Designs and Outcomes,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/5367, Universidad Carlos III de Madrid.
- Marín Uribe, Pedro Luis & Siotis, Georges, 2002. "Public Policies Towards Research Joint Venture Formation: Designs and Outcomes," CEPR Discussion Papers 3772, C.E.P.R. Discussion Papers.
- Tatiana Alonso & Pedro Marín, 2004. "Research joint ventures: the role of public research institutes," Investigaciones Economicas, Fundación SEPI, vol. 28(2), pages 213-231, May.
- Marin, Pedro L. & Siotis, Georges, 2008. "Public policies towards Research Joint Venture: Institutional design and participants' characteristics," Research Policy, Elsevier, vol. 37(6-7), pages 1057-1065, July.
- Kaiser, Ulrich, 2002. "An empirical test of models explaining research expenditures and research cooperation: evidence for the German service sector," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 747-774, June.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:wzb:wzebiv:fsiv98-15For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jennifer Rontganger).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

