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R&D Cooperation and the Joint Exploitation of R&D

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  • Andrew Brod
  • Ram Shivakumar

Abstract

Is R&D cooperation preferred to noncooperative R&D and does the answer depend on how firms choose output? And if antitrust protection is provided to R&D, is it desirable to extend antitrust protection to cooperative production as well? In the authors' model, cooperative R&D is always preferred by both firms and consumers, regardless of how output is chosen. They then show that, though innovation effort and profits are higher when both output and R&D effort are chosen cooperatively, consumer surplus and overall social welfare are higher when cooperation is restricted to R&D.

Suggested Citation

  • Andrew Brod & Ram Shivakumar, 1997. "R&D Cooperation and the Joint Exploitation of R&D," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 673-684, August.
    • Handle: RePEc:cje:issued:v:30:y:1997:i:3:p:673-84
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    Citations

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    Cited by:

    1. Suetens, Sigrid, 2008. "Does R&D cooperation facilitate price collusion? An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 822-836, June.
    2. Marie-Laure Cabon-Dhersin & Rim Lahmandi-Ayed, 2011. "R&D Organization: Cooperation or Cross-Licensing?," Recherches économiques de Louvain, De Boeck Université, vol. 77(1), pages 31-52.
    3. Buckley, Neil & Mestelman, Stuart & Shehata, Mohamed, 2003. "Subsidizing public inputs," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 819-846, March.
    4. Ruslan Lukach & Joseph Plasmans & Peter M. Kort, 2005. "Innovation Strategies in a Competitive Dynamic Setting," CESifo Working Paper Series 1395, CESifo.
    5. Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April.
    6. Clark, Derek J. & Sand, Jan Yngve, 2010. "Endogenous technology sharing in R&D intensive industries," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 4, pages 1-48.
    7. Gilles Saint-Paul, 2024. "Knowledge Sharing and Cumulative Innovation in Business Networks," JRFM, MDPI, vol. 17(4), pages 1-17, March.
    8. Müller, Aranja & Zaby, Alexandra K., 2019. "Research joint ventures and technological proximity," Research Policy, Elsevier, vol. 48(5), pages 1187-1200.
    9. Motchenkova, E.I. & Rus, O., 2011. "Research joint ventures and price collusion: Joint analysis of the impact of R&D subsidies and antitrust fines," Serie Research Memoranda 0025, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Christian Wey, 1999. "Compatibility Investments in Duopoly with Demand Side Spillovers under Different Degrees of Cooperation," CIG Working Papers FS IV 99-02, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG), revised Aug 1999.
    11. Marie-Laure Cabon-Dhersin & Romain Gibert, 2017. "Cooperation or non-cooperation in R&D: how should research be funded? ," Working Papers hal-01587014, HAL.
    12. Nobuyuki Takashima & Yasunori Ouchida, 2020. "Quality‐improving R&D and merger policy in a differentiated duopoly: Cournot and Bertrand equilibria," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1338-1348, October.
    13. Marie-Laure Cabon-Dhersin & Romain Gibert, 2018. "Cooperation or non-cooperation in R&D: how should research be funded?," Post-Print hal-02006515, HAL.
    14. Hinloopen, Jeroen, 2000. "Strategic R&D Co-operatives," Research in Economics, Elsevier, vol. 54(2), pages 153-185, June.
    15. 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.
    16. Julie DeCourcy, 2005. "Cooperative R&D and strategic trade policy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 546-573, May.
    17. Neubecker, Leslie, 2003. "Does cooperation in manufactoring foster tacit collusion," Tübinger Diskussionsbeiträge 261, University of Tübingen, School of Business and Economics.

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