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National R&D cooperation: A special type of strategic policy

Author

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  • MOTTA, Massimo

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

Abstract

D'Aspremont and Jacquemin's (1988) model is extended to study alternative configurations of research agreements. Analogies with the cartel literature are found: under certain conditions on spillover values, outsiders benefit more than participants in R&D agreements. If cooperative spillovers are high enough, though, national R&D cooperation has the same beneficial effect as subsidies in strategic trade policies. Unlike the latter, however, it is not necessarily harmful to foreigners, and retaliation may leave both countries better off than non-cooperation. Finally, international R&D cooperation would be Pareto-superior to both retaliation and non-cooperation for high enough spillovers.

Suggested Citation

  • MOTTA, Massimo, 1992. "National R&D cooperation: A special type of strategic policy," LIDAM Discussion Papers CORE 1992002, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1992002
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp1992.html
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    Cited by:

    1. Mireille Matt, 2000. "Diversité exogène des entreprises et justification économique d'une politique d'incitation à la coopération en R&D," Économie et Prévision, Programme National Persée, vol. 145(4), pages 117-130.

    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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