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Competition and R&D cooperation with universities and competitors

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  • Thomas Bolli

    ()

  • Martin Woerter

    ()

Abstract

This paper analyses the relationship between competitive environment and R&D cooperation with universities and competitors. Our simple model suggests that cooperation creates benefits in terms of synergies but also induces costs due to spillovers. Since the value of these synergies and spillovers depends on the competitive pressure, cooperation propensity depends on the competitive environment. Differentiating between the dimensions of competition, we hypothesize that university cooperation corresponds to quality competition, while horizontal cooperation relates to price competition. Furthermore, we predict that a higher number of competitors reduces the incentives for horizontal cooperation as it diminishes the gains from “collusion”. We test these hypotheses using Swiss firm-level panel data that allows us to control for simultaneity of cooperation decisions and endogeneity of competition. Our empirical analysis supports the relevance of distinguishing between competition dimensions and cooperation partners, respectively. We find that price competition has an influence on university cooperation in the form of an inverted U. Quality competition only has an influence on university cooperation and the relationship shows a U-form. Moreover, we see that the number of principal competitors reduces cooperation between competitors. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Thomas Bolli & Martin Woerter, 2013. "Competition and R&D cooperation with universities and competitors," The Journal of Technology Transfer, Springer, vol. 38(6), pages 768-787, December.
  • Handle: RePEc:kap:jtecht:v:38:y:2013:i:6:p:768-787
    DOI: 10.1007/s10961-013-9302-2
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    References listed on IDEAS

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    Cited by:

    1. David Aristei & Michela Vecchi & Francesco Venturini, 2016. "University and inter-firm R&D collaborations: propensity and intensity of cooperation in Europe," The Journal of Technology Transfer, Springer, vol. 41(4), pages 841-871, August.
    2. René Belderbos & Martin Carree & Boris Lokshin & Juan Fernández Sastre, 2015. "Inter-temporal patterns of R&D collaboration and innovative performance," The Journal of Technology Transfer, Springer, vol. 40(1), pages 123-137, February.
    3. Irene Ramos-Vielba & Mabel Sánchez-Barrioluengo & Richard Woolley, 2016. "Scientific research groups’ cooperation with firms and government agencies: motivations and barriers," The Journal of Technology Transfer, Springer, vol. 41(3), pages 558-585, June.

    More about this item

    Keywords

    Innovation cooperation; University cooperation; Horizontal cooperation; Number of competitors; Price competition; Quality competition; O3;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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