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R&D Collaboration Networks in Mixed Oligopoly

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  • Vasileios Zikos

    (Loughborough University)

Abstract

We develop a model of endogenous network formation in order to examine the incentives for R&D collaboration in a mixed oligopoly. Our analysis reveals that the complete network, where each firm collaborates with all others, is uniquely stable, industry-profit maximizing and efficient. This result is in contrast with earlier contributions in private oligopoly where under strong market rivalry a conflict between stable and efficient networks is likely to occur. A key finding of the paper is that state-owned enterprises may be used as policy instruments in tackling the potential conflict between individual and collective incentives for R&D collaboration.

Suggested Citation

  • Vasileios Zikos, 2008. "R&D Collaboration Networks in Mixed Oligopoly," Working Papers 2008.25, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2008.25
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    Cited by:

    1. Mauleon, Ana & Sempere-Monerris, Jose J. & Vannetelbosch, Vincent, 2023. "R&D network formation with myopic and farsighted firms," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 203-229.
    2. Neil Rickman & Vasileios Zikos, 2016. "Endogenous R&D networks when labour unions have preferences over wages and employment," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(1), pages 1-13, January.
    3. 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.
    4. Qiang Gong & Huanxing Yang, 2020. "Collaborative Networks in Oligopoly with Asymmetric Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(2), pages 357-380, March.

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    More about this item

    Keywords

    Networks; R&D Collaboration; Mixed Oligopoly;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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