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Incentives and forms of cooperation in research and development

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  • Silipo, Damiano B.

Abstract

The paper examines the main factors that affect the incentive to cooperate in R&D, inquiring into the effects of cooperation on incentives to innovate in both a complete and an incomplete contract framework. It considers several forms of cooperative agreements and studies the circumstances that make one type of cooperation, more likely than others, to emerge. Theoretical considerations suggest that two of the main factors are uncertainty and spillovers. Further, the incentive to cooperate may be greater or less among symmetric than among asymmetric firms, depending on the source of the asymmetry. When firms cooperate, in most cases they prefer a research joint venture, but because of transaction costs, moral hazard and adverse selection problems other forms of cooperation in R&D may occur. Uncertainty and spillovers also affect the size and the nature of coalitions, and in some circumstances competing research joint ventures may be formed. Finally, the paper surveys the empirical evidence and discusses its consistency with the theoretical conclusions.

Suggested Citation

  • Silipo, Damiano B., 2008. "Incentives and forms of cooperation in research and development," Research in Economics, Elsevier, vol. 62(2), pages 101-119, June.
  • Handle: RePEc:eee:reecon:v:62:y:2008:i:2:p:101-119
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    3. Nimisha Pandey & Heleen de Coninck & Ambuj D Sagar, 2022. "Beyond technology transfer: Innovation cooperation to advance sustainable development in developing countries," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(2), March.
    4. Kabiraj, Tarun & Chattopadhyay, Srobonti, 2014. "Cooperative vs. non-cooperative R&D incentives under incomplete information," MPRA Paper 59259, University Library of Munich, Germany.
    5. Marie-Laure Cabon-Dhersin & Romain Gibert, 2018. "Cooperation or non-cooperation in R&D: how should research be funded?," Post-Print hal-02006515, HAL.
    6. Marie‐Laure Cabon‐Dhersin & Romain Gibert, 2020. "R&D cooperation, proximity and distribution of public funding between public and private research sectors," Manchester School, University of Manchester, vol. 88(6), pages 773-800, December.
    7. Chiara CONTI, 2013. "Asymmetric information in a duopoly with spillovers: new findings on the effects of RJVs," Departmental Working Papers 2013-04, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
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    9. Cantabene, Claudia & grassi, iacopo, 2018. "R&D cooperation in SMEs: the direct effect and the moderating role of human capital," MPRA Paper 87925, University Library of Munich, Germany.

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