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

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

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.

Citation

Anbarci, N., Lemke, R., & Roy, S. (2002). Inter-firm complementarities in R&D: a re-examination of the relative performance of joint ventures. International Journal of Industrial Organization, 20(2), 191-213. https://doi.org/10.1016/s0167-7187%2800%2900081-3

• 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
• Electronic ISSN: 1873-7986
• 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