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Why Firms Form Research Joint Ventures: Theory and Evidence

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  • Röller, Lars-Hendrik
  • Siebert, Ralph
  • Tombak, Mihkel

Abstract

The literature on research joint ventures (RJVs) has emphasized internalizing spillovers and cost-sharing as motives for RJV formation. In this paper we develop two additional explanations: product market complementarities and firm heterogeneity. We analyse a model of RJVs with asymmetric firms and differentiated products. We then test these various explanations for RJV formation using data now available through the US National Cooperative Research Act.

Suggested Citation

  • Röller, Lars-Hendrik & Siebert, Ralph & Tombak, Mihkel, 1997. "Why Firms Form Research Joint Ventures: Theory and Evidence," CEPR Discussion Papers 1654, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1654
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    More about this item

    Keywords

    Joint Ventures; Product Market Competition; Research And Development;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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