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Inter-firm complementarities in R&D: a re-examination of the relative performance of joint ventures

Anbarci, N.; Lemke, R.; Roy, S.

Authors

R. Lemke

S. Roy



Abstract

We compare duopoly outcomes between two alternative modes of research and development (R&D), viz. independent R&D and non-cooperative research joint ventures (RJVs), when there are complementarities between firm-specific R&D resources. When complementarity is high, RJVs lead to higher technological improvement and the reverse holds for low complementarity. In the intermediate range, the comparison depends on the relative imperfection in spillovers afflicting independent R&D. In sharp contrast to results on cooperative RJVs, non-cooperative RJVs lead to higher technological improvement when spillovers affecting independent R&D are low; the reverse holds for high spillovers. When RJVs yield higher technological improvement, they also yield higher industry profit and social welfare.

Journal Article Type Article
Acceptance Date Jun 2, 2000
Online Publication Date Nov 6, 2001
Publication Date 2002-02
Deposit Date Aug 17, 2018
Journal International Journal of Industrial Organization
Print ISSN 0167-7187
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 20
Issue 2
Pages 191-213
DOI https://doi.org/10.1016/s0167-7187%2800%2900081-3
Public URL https://durham-repository.worktribe.com/output/1351492