Working Paper: CEPR ID: DP1654
Authors: Larshendrik Roller; Mihkel M. Tombak; Ralph Siebert
Abstract: 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.
Keywords: Research and Development; Joint Ventures; Product Market Competition
JEL Codes: L0; L6; 03
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| firm size similarity (L25) | RJV formation (L26) |
| cost-sharing effects (D16) | firm-level R&D investments (D25) |
| freerider effects (H40) | firm-level R&D investments (D25) |
| product complementarity (D10) | RJV formation (L26) |