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R&D cooperation and R&D intensity : theory and micro-econometric evidence for german manufacturing industries

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Author Info
Kaiser, Ulrich
Licht, Georg

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Abstract

This paper develops a three stage oligopoly game for R&D cooperation, R&D expenditure and product market competition. In the first stage, firms decide whether or not to conduct R&D in cooperation with other firms. In the second stage the level of R&D investment is determined. Finally, firms compete in a Cournot?oligopoly product market. While earlier models on R&D cooperation only considered process innovation, the model presented here also takes product innovation into account. It is shown that the optimal R&D investment has virtually the same structure for both process and product innovation. The main hypothesis of our theoretical model are tested in the empirical part of this paper. --

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Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 98-32.

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Date of creation: 1998
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Handle: RePEc:zbw:zewdip:5206

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Related research
Keywords: R&D cooperation; R&D intensity; spillovers; nested logit model; Minimum Distance Estimator;

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Find related papers by JEL classification:
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

References listed on IDEAS
Please 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.:

  1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
    Other versions:
  3. 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. [Downloadable!] (restricted)
  4. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September. [Downloadable!] (restricted)
  5. Choi, Jay Pil, 1993. "Cooperative R&D with product market competition," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 553-571. [Downloadable!] (restricted)
  6. Folster, Stefan, 1995. "Do subsidies to cooperative R & D actually stimulate R & D investment and cooperation?," Research Policy, Elsevier, vol. 24(3), pages 403-417, May. [Downloadable!] (restricted)
  7. Suzumura, Kotaro, 1992. "Cooperative and Noncooperative R&D in an Oligopoly with Spillovers," American Economic Review, American Economic Association, vol. 82(5), pages 1307-20, December. [Downloadable!] (restricted)
  8. Veall, Michael R & Zimmermann, Klaus F, 1994. "Goodness of Fit Measures in the Tobit Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(4), pages 485-99, November.
  9. Ziss, Steffen, 1994. "Strategic R&D with Spillovers, Collusion and Welfare," Journal of Industrial Economics, Blackwell Publishing, vol. 42(4), pages 375-93, December. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
  11. Richard C. Levin & Peter C. Reiss, 1988. "Cost-Reducing and Demand-Creating R&D with Spillovers," RAND Journal of Economics, The RAND Corporation, vol. 19(4), pages 538-556, Winter. [Downloadable!] (restricted)
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Cited by:
(explanations, Please 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.)

  1. Kaiser, Ulrich, 1999. "Measuring Knowledge Spillovers in Manufacturing and Services: An Empirical Assessment of Alternative Approaches," ZEW Discussion Papers 99-62, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  2. Schmidt, Tobias, 2007. "Motives for Innovation Co-operation ? Evidence from the Canadian Survey of Innovation," ZEW Discussion Papers 07-018, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Joachim Inkmann, 2000. "Horizontal and Vertical R&D Cooperation," CoFE Discussion Paper 00-02, Center of Finance and Econometrics, University of Konstanz. [Downloadable!]
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