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Controlling Contractual Exchange Risks in R&D-Interfirm-Cooperation: An Empirical Study

Author

Listed:
  • Roland Helm

    () (University of Jena, Faculty of Economics)

  • Martin Kloyer

    () (University of Jena, Faculty of Economics)

Abstract

Suppliers and buyers of R&D-results perceive two exchange risks: first, the risk to achieve a lower profitability on the innovation return than the exchange partner, second, the risk of the partner becoming a competitor by unplanned, one-sided knowledge flows. Both risks motivate opportunistic behaviour. This paper deals with the reduction of the perceived supplier risks. The contractually guaranteed option on later negotiation of a continuous innovation return sharing is introduced. This option has not been considered as an instrument against exchange risks in theory, yet. The basis for such an option are contractual hostages. An empirical study analyses how effectively contractual hostages lower the perceived risks.

Suggested Citation

  • Roland Helm & Martin Kloyer, 2003. "Controlling Contractual Exchange Risks in R&D-Interfirm-Cooperation: An Empirical Study," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 17/2003, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
  • Handle: RePEc:jen:jenasw:2003-17
    as

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    References listed on IDEAS

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    Cited by:

    1. Bonte, Werner & Keilbach, Max, 2005. "Concubinage or marriage? Informal and formal cooperations for innovation," International Journal of Industrial Organization, Elsevier, vol. 23(3-4), pages 279-302, April.
    2. Kloyer, Martin & Scholderer, Joachim, 2012. "Effective incomplete contracts and milestones in market-distant R&D collaboration," Research Policy, Elsevier, vol. 41(2), pages 346-357.
    3. Marco Furlotti, 2007. "There is more to contracts than incompleteness: a review and assessment of empirical research on inter-firm contract design," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 11(1), pages 61-99, March.

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