Cooperative R&D with product market competition

Research output: Contribution to journalArticle

86 Citations (Scopus)

Abstract

A simple model RJV is presented to examine the private and social incentives for cooperative R&D in the presence of product market competition. The key assumption to our analysis was that the spillover rate increases with cooperation in R&D and total industry profit decreases as the spillover rate increases due to intensified post-innovation competition. This leads to a negative impact of cooperative R&D, introducing a trade-off in the model. It is shown that private firms prefer a cooperative R&D to non-cooperative R&D competition when spillover rates are high and that the private incentive for cooperative R&D is less than the social incentive.

Original languageEnglish
Pages (from-to)553-571
Number of pages19
JournalInternational Journal of Industrial Organization
Volume11
Issue number4
DOIs
Publication statusPublished - 1993

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Profitability
Innovation
Spillover
Incentives
Product market competition
Industry
Trade-offs
Profit
Private firms

All Science Journal Classification (ASJC) codes

  • Industrial relations
  • Aerospace Engineering
  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

Cite this

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Cooperative R&D with product market competition. / Choi, Jay Pil.

In: International Journal of Industrial Organization, Vol. 11, No. 4, 1993, p. 553-571.

Research output: Contribution to journalArticle

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