Working Paper: NBER ID: w23734
Authors: James D. Adams; Albert N. Link
Abstract: Research Joint Ventures (RJVs) are projects that combine the research resources of different firms. A sample of RJVs supported by the U.S. Advanced Technology Program shows that the projects yield revenues that are far less than costs. Related to this point, the RJVs are subject to commercialization delays, loss of intellectual property, and product market competition. Partner firms undertake joint research, but if they commercialize at all, they do so separately, to avoid splitting of revenues from new products. Ultimately, difficulties with the RJVs occur because frequently, firms are potential competitors.
Keywords: Research Joint Ventures; Advanced Technology Program; Commercialization; Intellectual Property; Competition
JEL Codes: D23; K21; L24; O31; O34; O38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Financial structure of RJVs (G32) | Economic viability of RJVs (L24) |
| Presence of potential market rivals among partner firms (L14) | Commercialization delays (O39) |
| Presence of potential market rivals among partner firms (L14) | Loss of intellectual property (O34) |
| Commercialization delays (O39) | Success of RJVs (L24) |
| Loss of intellectual property (O34) | Success of RJVs (L24) |
| Firms choose to commercialize products separately (L14) | Potential benefits of collaboration (O36) |
| Past failures in commercialization (L19) | Future investment decisions (G11) |
| Additional investment by firms (D25) | Losses incurred (G33) |