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Coordination costs and research joint ventures

Author

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  • Falvey, Rod
  • Poyago-Theotoky, Joanna
  • Teerasuwannajak, Khemarat Talerngsri

Abstract

We consider a simple oligopoly model where firms engage in cost-reducing R&D and compare two R&D regimes: R&D competition and R&D cooperation in the form of a research joint venture (RJV). We introduce coordination costs for the RJV and examine how these affect the equilibrium outcomes.

Suggested Citation

  • Falvey, Rod & Poyago-Theotoky, Joanna & Teerasuwannajak, Khemarat Talerngsri, 2013. "Coordination costs and research joint ventures," Economic Modelling, Elsevier, vol. 33(C), pages 965-976.
    • Handle: RePEc:eee:ecmode:v:33:y:2013:i:c:p:965-976
    DOI: 10.1016/j.econmod.2013.03.005
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    References listed on IDEAS

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    1. María José Gil Moltó & Nikolaos Georgantzís & Vicente Orts, 2005. "Cooperative R&D with Endogenous Technology Differentiation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(2), pages 461-476, June.
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    3. Simona Fabrizi & Steffen Lippert, 2012. "Due Diligence, Research Joint Ventures, and Incentives to Innovate," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 168(4), pages 588-611, December.
    4. Constantine Manasakis & Emmanuel Petrakis, 2009. "Union structure and firms' incentives for cooperative R&D investments," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 665-693, May.
    5. Amir, Rabah, 2000. "Modelling imperfectly appropriable R&D via spillovers," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 1013-1032, October.
    6. Beath, John & Poyago-Theotoky, Joanna & Ulph, David, 1998. "Organization Design and Information-Sharing in a Research Joint Venture with Spillovers," Bulletin of Economic Research, Wiley Blackwell, vol. 50(1), pages 47-59, January.
    7. Poyago-Theotoky, Joanna, 1995. "Equilibrium and Optimal Size of a Research Joint Venture in an Oligopoly with Spillovers," Journal of Industrial Economics, Wiley Blackwell, vol. 43(2), pages 209-226, June.
    8. Gamal Atallah, 2005. "R&D cooperation with asymmetric spillovers," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 919-936, August.
    9. Stephen Campbell & Stephanie Shipp & Tim Mulcahy & Ted Allen, 2009. "Informing public policy on science and innovation: the Advanced Technology Program’s experience," The Journal of Technology Transfer, Springer, vol. 34(3), pages 304-319, June.
    10. Jon Vilasuso & Mark R. Frascatore, 2000. "Public policy and R&D when research joint ventures are costly," Canadian Journal of Economics, Canadian Economics Association, vol. 33(3), pages 818-839, August.
    11. 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 1293-1306, December.
    12. Kogut, Bruce, 1989. "The Stability of Joint Ventures: Reciprocity and Competitive Rivalry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 183-198, December.
    13. Ascension Barajas & Elena Huergo, 2010. "International R&D cooperation within the EU Framework Programme: empirical evidence for Spanish firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(1), pages 87-111.
    14. 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.
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    1. repec:eee:ejores:v:267:y:2018:i:2:p:523-539 is not listed on IDEAS
    2. repec:gam:jgames:v:9:y:2018:i:3:p:64-:d:167793 is not listed on IDEAS
    3. Tran, Tat Thanh & Zikos, Vasileios, 2014. "Together at Last: The Endogenous Formation of Free Trade Agreements and International R&D Networks," MPRA Paper 66187, University Library of Munich, Germany.
    4. Ouchida, Yasunori & Goto, Daisaku, 2016. "Environmental research joint ventures and time-consistent emission tax: Endogenous choice of R&D formation," Economic Modelling, Elsevier, vol. 55(C), pages 179-188.
    5. Tran, Tat Thanh & Zikos, Vasileios, 2017. "R&D networks among suppliers and manufacturers," Economic Modelling, Elsevier, vol. 60(C), pages 151-161.
    6. Naoto Aoyama & Emilson C.D. Silva, 2017. "Asymmetric Innovation Agreements under Environmental Regulation," CESifo Working Paper Series 6782, CESifo Group Munich.

    More about this item

    Keywords

    Research joint venture (RJV); Process innovation; Coordination costs;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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