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Endogenous Spillovers and the Performance of Research Joint Ventures

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  • Katsoulacos, Yannis
  • Ulph, David

Abstract

The authors present a model of R&D with endogenous spillovers and demonstrate that noncooperation can produce maximal spillovers. The only other noncooperative outcome is minimal spillovers. When noncooperation achieves maximal spillovers so does a research joint venture (RJV), whereas minimal noncooperative spillovers imply partial--but not necessarily maximal--spillovers by an RJV. Partial RJV spillovers are chosen for anticompetitive reasons and an RJV may also close a lab for anticompetitive reasons. The possibility of anticompetitive outcomes is precluded in the existing literature on RJVs which focuses on symmetric outcomes. The authors' model predicts when anticompetitive behavior by an RJV arises. Copyright 1998 by Blackwell Publishing Ltd

Suggested Citation

  • Katsoulacos, Yannis & Ulph, David, 1998. "Endogenous Spillovers and the Performance of Research Joint Ventures," Journal of Industrial Economics, Wiley Blackwell, vol. 46(3), pages 333-357, September.
  • Handle: RePEc:bla:jindec:v:46:y:1998:i:3:p:333-57
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