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Information Sharing and the Stability of Cooperation in Research Joint Ventures

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  • ATALLAH, Gamal

Abstract

The model studies information sharing and the stability of cooperation in cost reducing Research Joint Ventures (RJVs). In a four-stage game-theoretic framework, firms decide on participation in a RJV, information sharing, R&D expenditures, and output. An important feature of the model is that voluntary information sharing between cooperating firms increases information leakage from the RJV to outsiders. It is found that it is the spillover from the RJV to outsiders which determines the decision of insiders whether to share information, while it is the spillover affecting all firms which determines the level of information sharing within the RJV. RJVs representing a larger portion of firms in the industry are more likely to share information. It is also found that when sharing information is costless, firms never choose intermediate levels of information sharing : they share all the information or none at all. The size of the RJV is found to depend on three effects : a coordination effect, an information sharing effect, and a competition effect. Depending on the relative magnitudes of these effects, the size of the RJV may increase or decrease with spillovers. The effect of information sharing on the profitability of firms as well as on welfare is studied.

Suggested Citation

  • ATALLAH, Gamal, 2000. "Information Sharing and the Stability of Cooperation in Research Joint Ventures," Cahiers de recherche 2000-17, Universite de Montreal, Departement de sciences economiques.
  • Handle: RePEc:mtl:montde:2000-17
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    1. Karbowski, Adam, 2015. "Problemy dzielenia się wiedzą w poziomej współpracy badawczo-rozwojowej [Problems of knowledge sharing in horizontal R&D cooperation]," MPRA Paper 69602, University Library of Munich, Germany.
    2. Gamal Atallah, 2005. "Partner Selection in R&D Cooperation," CIRANO Working Papers 2005s-24, CIRANO.
    3. Craig Boardman & Barry Bozeman, 2006. "Implementing a 'bottom-up,' multi-sector research collaboration: The case of the Texas air quality study," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(1), pages 51-69.
    4. Gamal Atallah, 2003. "Information sharing and the stability of cooperation in research joint ventures," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 531-554.
    5. Abiodun Egbetokun & Ivan Savin, 2015. "Absorptive Capacity and Innovation: When Is It Better to Cooperate?," Economic Complexity and Evolution, in: Andreas Pyka & John Foster (ed.), The Evolution of Economic and Innovation Systems, edition 127, pages 373-399, Springer.
    6. Gamal Atallah, 2004. "The Protection of Innovations," CIRANO Working Papers 2004s-02, CIRANO.
    7. Bönte, Werner & Wiethaus, Lars, 2005. "Knowledge Transfer in Buyer-Supplier Relationships - When It (Not) Occurs," RWI Discussion Papers 34, RWI - Leibniz-Institut für Wirtschaftsforschung.
    8. Lars Wiethaus, 2006. "Cooperation or competition in R&D when innovation and absorption are costly," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(6), pages 569-589.
    9. Gamal Atallah, 2004. "The Allocation Of Resources To Cooperative And Noncooperative R&D," Australian Economic Papers, Wiley Blackwell, vol. 43(4), pages 435-447, December.
    10. Duarte Leite & Pedro Campos & Isabel Mota, 2011. "Computational Results on Membership in R&D Cooperation Networks: To Be or Not To Be in a Research Joint Venture," FEP Working Papers 420, Universidade do Porto, Faculdade de Economia do Porto.
    11. Andrzej Kwiatkowski, 2010. "Non-cooperative incentives to share knowledge in competitive environments," Dundee Discussion Papers in Economics 243, Economic Studies, University of Dundee.
    12. Werner Bönte & Lars Wiethaus, 2007. "Knowledge Disclosure and Transmission in Buyer–Supplier Relationships," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 31(4), pages 275-288, December.
    13. Werner Bönte & Lars Wiethaus, 2005. "Knowledge Transfer in Buyer-Supplier Relationships – When It (Not) Occurs," RWI Discussion Papers 0034, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    14. repec:zbw:rwidps:0034 is not listed on IDEAS

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    More about this item

    Keywords

    endogenous R&D sllovers; information sharing; R&D cooration; research joint ventures;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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