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Competition and R&D cooperation with universities and competitors

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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
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    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. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.

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    JEL classification:

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

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