DP1654 Why Firms Form Research Joint Ventures: Theory and Evidence
|Author(s):||Lars-Hendrik Röller, Ralph Siebert, Mihkel Tombak|
|Publication Date:||May 1997|
|Keyword(s):||Joint Ventures, Product Market Competition, Research And Development|
|JEL(s):||L0, L6, O3|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=1654|
The literature on research joint ventures (RJVs) has emphasized internalizing spillovers and cost-sharing as motives for RJV formation. In this paper we develop two additional explanations: product market complementarities and firm heterogeneity. We analyse a model of RJVs with asymmetric firms and differentiated products. We then test these various explanations for RJV formation using data now available through the US National Cooperative Research Act.