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Information sharing and the stability of cooperation in research joint ventures

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  • Gamal Atallah

Abstract

The model studies information sharing and the stability of cooperation in cost reducing Research Joint Ventures (RJVs). In a three-stage game-theoretic framework, firms decide on participation in a RJV, information sharing along with R&D expenditures, and output. An important feature of the model is that voluntary information sharing between cooperating firms increases information leakage from the RJV to outsiders. It is found that RJVs representing a larger portion of firms in the industry are more likely to share information. It is also found that when sharing information is costless, firms generally don't choose intermediate levels of information sharing: they share all the information or none at all. The size of the RJV is found to depend on three effects: a coordination effect, an information sharing effect, and a competition effect. Depending on the relative magnitudes of these effects, the size of the RJV may increase or decrease with spillovers. In response to an increase in leakages, RJV members reduce their R&D spending. In addition, they either increase the RJV size while maintaining information sharing unchanged (when leakages are low), or they reduce both information sharing and RJV size (when leakages are high).

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  • Gamal Atallah, 2003. "Information sharing and the stability of cooperation in research joint ventures," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 531-554.
  • Handle: RePEc:taf:ecinnt:v:12:y:2003:i:6:p:531-554
    DOI: 10.1080/1043859032000061134
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    Cited by:

    1. Gamal Atallah, 2005. "Partner Selection in R&D Cooperation," CIRANO Working Papers 2005s-24, CIRANO.
    2. Craig Boardman & Barry Bozeman, 2006. "Implementing a 'bottom-up,' multi-sector research collaboration: The case of the Texas air quality study," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(1), pages 51-69.
    3. Abiodun Egbetokun & Ivan Savin, 2015. "Absorptive Capacity and Innovation: When Is It Better to Cooperate?," Economic Complexity and Evolution, in: Andreas Pyka & John Foster (ed.), The Evolution of Economic and Innovation Systems, edition 127, pages 373-399, Springer.
    4. Gamal Atallah, 2003. "Information sharing and the stability of cooperation in research joint ventures," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 531-554.
    5. Gamal Atallah, 2004. "The Allocation Of Resources To Cooperative And Noncooperative R&D," Australian Economic Papers, Wiley Blackwell, vol. 43(4), pages 435-447, December.
    6. Gamal Atallah, 2004. "The Protection of Innovations," Working Papers 0402E, University of Ottawa, Department of Economics.
    7. Werner Bönte & Lars Wiethaus, 2007. "Knowledge Disclosure and Transmission in Buyer–Supplier Relationships," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 31(4), pages 275-288, December.
    8. Werner Bönte & Lars Wiethaus, 2005. "Knowledge Transfer in Buyer-Supplier Relationships – When It (Not) Occurs," RWI Discussion Papers 0034, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    9. Kwiatkowski, Andrzej, 2010. "Non-cooperative incentives to share knowledge in competitive environments," SIRE Discussion Papers 2010-87, Scottish Institute for Research in Economics (SIRE).
    10. Karbowski, Adam, 2015. "Problemy dzielenia się wiedzą w poziomej współpracy badawczo-rozwojowej [Problems of knowledge sharing in horizontal R&D cooperation]," MPRA Paper 69602, University Library of Munich, Germany.
    11. Bönte, Werner & Wiethaus, Lars, 2005. "Knowledge Transfer in Buyer-Supplier Relationships - When It (Not) Occurs," RWI Discussion Papers 34, RWI - Leibniz-Institut für Wirtschaftsforschung.
    12. Lars Wiethaus, 2006. "Cooperation or competition in R&D when innovation and absorption are costly," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(6), pages 569-589.
    13. Duarte Leite & Pedro Campos & Isabel Mota, 2011. "Computational Results on Membership in R&D Cooperation Networks: To Be or Not To Be in a Research Joint Venture," FEP Working Papers 420, Universidade do Porto, Faculdade de Economia do Porto.
    14. repec:zbw:rwidps:0034 is not listed on IDEAS

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    More about this item

    Keywords

    Endogenous R&D Spillovers; Information Sharing; R&D Cooperation; Research Joint Ventures;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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