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R&D Leadership And Research Joint Ventures

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  • Paul O'Sullivan

    (Economics, National University of Ireland, Maynooth)

Abstract

This paper examines the effect of R&D leadership on Research Joint Venture formation. If firms compete in R&D, there is a first (second)-mover advantage, when spillovers are relatively low (high). RJV profits exceed those of R&D leadership, except for a very narrow range of low unit R&D costs and spillovers. For a leader, preventing follower activity is only profitable if unit R&D costs and spillovers are relatively low. If unit R&D costs are sufficiently low, preventing the follower from becoming active may be welfare dominant but not profit maximizing, possibly justifying a role for government policy to subsidise R&D investment

Suggested Citation

  • Paul O'Sullivan, 2014. "R&D Leadership And Research Joint Ventures," Economics Department Working Paper Series n251-14.pdf, Department of Economics, National University of Ireland - Maynooth.
    • Handle: RePEc:may:mayecw:n251-14.pdf
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    File URL: http://repec.maynoothuniversity.ie/mayecw-files/N251-14.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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