IDEAS home Printed from https://ideas.repec.org/p/kof/wpskof/11-275.html

Competition and R&D cooperation with universities and competitors

Author

Abstract

This paper analyzes the relationship between competition and R&D cooperation with universities and competitors. Our simple model predicts that more competitors reduce the incentives for horizontal cooperation as it diminishes the gains from "collusion". Assuming that the value of synergies and spillovers created by cooperation depends on competition intensity reveals two distinct and opposing incentives for cooperation. While synergies foster R&D cooperation, spillovers may hinder cooperation. We mainly hypothesize that university cooperation corresponds to product innovation and hence quality competition, while horizontal cooperation lead to process innovations and therefore relates to price competition. We test these hypotheses based on Swiss firm-level panel data controlling for simultaneity of cooperation decisions and endogeneity of competition. Our empirical analysis supports the relevance of distinguishing between competition dimensions and cooperation partners, respectively. We find that price competition matters for both university and horizontal cooperation and it takes the form of an inverted U-shape. On the contrary, quality competition only matters for university cooperation and the relationship shows a U-form. Moreover we see that the number of principal competitors is significantly related only to cooperation between competitors and the relationship shows an inverted U-form. Hence, markets with a medium number of competitors are more receptive for horizontal cooperation. In sum these findings advance our understanding of the relationship between innovation and competition policy.

Suggested Citation

  • Thomas Bolli & Martin Woerter, 2011. "Competition and R&D cooperation with universities and competitors," KOF Working papers 11-275, KOF Swiss Economic Institute, ETH Zurich.
    • Handle: RePEc:kof:wpskof:11-275
    DOI: 10.3929/ethz-a-006353312
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.3929/ethz-a-006353312
    Download Restriction: no
    File URL: https://libkey.io/10.3929/ethz-a-006353312?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. René Belderbos & Martin Carree & Boris Lokshin & Juan Fernández Sastre, 2015. "Inter-temporal patterns of R&D collaboration and innovative performance," The Journal of Technology Transfer, Springer, vol. 40(1), pages 123-137, February.
    2. Yuewei Wang & Cong Lu & Hang Chen & Yuyan Zhao, 2022. "Evaluation and Spatial Characteristics of Cooperation among Tourist Attractions Based on a Geographic Information System: A Case Study of The Yangtze River Delta Region, China," Sustainability, MDPI, vol. 14(20), pages 1-19, October.
    3. Natália L. Figueiredo & João J. M. Ferreira, 2022. "More than meets the partner: a systematic review and agenda for University–Industry cooperation," Management Review Quarterly, Springer, vol. 72(1), pages 231-273, February.
    4. BeomJu Park & Chang-Yang Lee, 2023. "Does R&D cooperation with competitors cause firms to invest in R&D more intensively? evidence from Korean manufacturing firms," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1045-1076, June.
    5. Tobias Johannes Hertrich & Thomas Brenner, 2024. "What hampers research collaboration in a region?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 44(2), pages 163-192, June.
    6. Wei Yang & Wantao Chen, 2026. "A configurational exploration of how organizational characteristics and multidimensional proximities influence university-industry collaborations," The Journal of Technology Transfer, Springer, vol. 51(1), pages 344-372, February.
    7. Emilio Bellini & Giuseppe Piroli & Luca Pennacchio, 2019. "Collaborative know-how and trust in university–industry collaborations: empirical evidence from ICT firms," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1939-1963, December.
    8. Samuel Amponsah Odei & Jan Stejskal, 2019. "Do Firms R&D Collaborations with the Science System and Enterprise Group Partners Stimulate Their Product and Process Innovations?," Economies, MDPI, vol. 7(2), pages 1-13, May.
    9. Irene Ramos-Vielba & Mabel Sánchez-Barrioluengo & Richard Woolley, 2016. "Scientific research groups’ cooperation with firms and government agencies: motivations and barriers," The Journal of Technology Transfer, Springer, vol. 41(3), pages 558-585, June.
    10. David Aristei & Michela Vecchi & Francesco Venturini, 2016. "University and inter-firm R&D collaborations: propensity and intensity of cooperation in Europe," The Journal of Technology Transfer, Springer, vol. 41(4), pages 841-871, August.
    11. Pan Yu & Gaoju Yang & Hangyu Chen, 2025. "Does cooperative research affect firms’ technology spillovers? Evidence from China," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(4), pages 1225-1248, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kof:wpskof:11-275. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/koethch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.