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Cooperative R&D and strategic trade policy

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  • Julie DeCourcy

Abstract

In this paper three different cooperative R&D arrangements in a strategic trade policy model are examined. A policy game between two governments is analysed, where each government chooses a particular cooperative R&D policy in order to maximize national welfare. Allowing cooperation in R&D is also compared with the use of R&D subsidies. It is jointly optimal for both governments to allow their firms to participate in the same type of cooperative R&D, and allowing cooperation in R&D can be superior to the use of R&D subsidies.

Suggested Citation

  • Julie DeCourcy, 2005. "Cooperative R&D and strategic trade policy," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 546-573, May.
  • Handle: RePEc:cje:issued:v:38:y:2005:i:2:p:546-573
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    Cited by:

    1. Ya-Chin Wang, 2016. "R&D Policy Involving Consumer-Friendly Strategy: Cooperative and Non-Cooperative R&D," Journal of Industry, Competition and Trade, Springer, vol. 16(2), pages 257-272, June.
    2. Zhou, Haiwen, 2007. "International R&D tournaments and Industrial Policy," MPRA Paper 75199, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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