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The role of spillovers in R&D network formation

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  • Lorenzo Zirulia

Abstract

The aim of this paper is to analyze the formation of R&D networks in a setting where spillovers between partners may be imperfect, due to knowledge tacitness, and partner-specific, depending on firms’ technological specializations. We find that firms have strong incentives to use the network to gain a competitive advantage and create ( ex post ) asymmetries. In the three firms case, in which one firm has unique technological capabilities, this firm gains a prominent position in the network, by forming an exclusive alliance and forcing into a weak position the firm outside the network. From a normative point of view, we find that the spillover rates do matter in determining the network that is optimal from the social point of view, and this network structure can be denser than the stable networks. In this case, the optimal policy would consist in active support to R&D cooperation.

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  • Lorenzo Zirulia, 2012. "The role of spillovers in R&D network formation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(1), pages 83-105, November.
    • Handle: RePEc:taf:ecinnt:v:21:y:2012:i:1:p:83-105
    DOI: 10.1080/10438599.2011.557558
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    3. Epiphane Sodjinou & Arne Henningsen, 2012. "Community-Based Management and Interrelations between Different Technology Adoption Decisions: Innovations in Village Poultry Farming in Western Africa," IFRO Working Paper 2012/11, University of Copenhagen, Department of Food and Resource Economics.
    4. Ben Ferrett & Vasileios Zikos, 2013. "Wage-Setting Institutions and R&D Collaboration Networks," Australian Economic Papers, Wiley Blackwell, vol. 52(2), pages 61-78, June.
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    6. Dusanee Kesavayuth & Constantine Manasakis & Vasileios Zikos, 2012. "Upstream R&D Networks," Working Papers 1201, University of Crete, Department of Economics.
    7. Kesavayuth, Dusanee & Zikos, Vasileios, 2012. "Upstream and downstream horizontal R&D networks," Economic Modelling, Elsevier, vol. 29(3), pages 742-750.

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