Working Paper: CEPR ID: DP15155
Authors: Albert Banalestanol; Tomaso Duso; Jo Seldeslachts; Florian Szucs
Abstract: We investigate the dimensions through which R&D spillovers are propagated across firms via cooperation through Research Joint Ventures (RJVs). We build on the framework developed by Bloom et al. (2013) which considers the opposing effects of technology spillovers and product market rivalry, and extend it to account for RJVs. Our main findings are that the adverse effects of product market rivalry are mitigated if firms cooperate in RJVs and that R&D spending is reduced among technologically close RJV participants.
Keywords: spillovers; R&D; research joint ventures; market value; patents
JEL Codes: L24; L44; K21; O32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| RJV participation (R50) | absorptive capacity (O36) |
| absorptive capacity (O36) | positive effects of technology spillovers (O33) |
| RJV participation (R50) | negative effects of product market spillovers (F61) |
| RJV insiders (L24) | larger positive impact from technology spillovers on firm value (O36) |
| RJV insiders (L24) | smaller negative impact from product market spillovers on firm value (F61) |
| pool of product market spillovers from closely related partners (F12) | lesser negative effect on firm value (G32) |
| RJV participation (R50) | reduction in wasteful duplication of R&D expenditures (O32) |
| RJV participation (R50) | significant impacts on market outcomes (F61) |