Discussion paper

DP1654 Why Firms Form Research Joint Ventures: Theory and Evidence

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.

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Citation

Tombak, M, L Röller and R Siebert (1997), ‘DP1654 Why Firms Form Research Joint Ventures: Theory and Evidence‘, CEPR Discussion Paper No. 1654. CEPR Press, Paris & London. https://cepr.org/publications/dp1654