DP2442 An Empirical Evaluation Of The Determinants Of Research Joint Venture Formation

Author(s): Roberto Hernán, Pedro Luis Marín Uribe, Georges Siotis
Publication Date: May 2000
Keyword(s): R&D, Research Joint Ventures, Spilllovers
JEL(s): C25, L13, O31
Programme Areas: Industrial Organization
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2442

This paper empirically analyses the determinants of firm participation in Research Joint Ventures (RJVs). A review of the theoretical literature highlights the difficulty of identifying a set of testable hypotheses. Using a large database of European RJVs, we estimate two participation equations at the firm level using the logit procedure. We find that sectoral R&D intensity positively influences the probability of forming an RJV. The presence of technological spillovers has a positive effect on RJV formation, but this is restricted to R&D intensive industries. A minimum level of industry concentration is needed for RJVs to be formed. Last, firm size and past experience with research cooperation increases the likelihood of RJV formation.