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Natural concentration in industrial research collaboration

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  • B. Westbrock

Abstract

Empirical work suggests that the network of research and development alliances is asymmetric, with a small number of firms involved in the majority of partnerships. This paper relates the structure of the collaboration network to a fundamental characteristic of the demand for research output: the benefits of knowledge accumulation create private and social incentives for a concentration of collaborative activities. I theoretically investigate the formation of bilateral collaborative links in two different industry settings, one socially managed, the other oligopolistic. I find that in both cases a concentrated network is the typical equilibrium structure as well as the socially efficient structure.

Suggested Citation

  • B. Westbrock, 2008. "Natural concentration in industrial research collaboration," Working Papers 08-15, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:0815
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    File URL: https://dspace.library.uu.nl/bitstream/handle/1874/309745/08_15.pdf
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    Cited by:

    1. Chiara CONTI, 2013. "Asymmetric information in a duopoly with spillovers: new findings on the effects of RJVs," Departmental Working Papers 2013-04, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

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    Keywords

    R&D collaboration; market structure; networks;
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