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R%D cooperation performance inside innovation clusters

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  • B.G. Jean Jacques Iritié

Abstract

This paper theoretically analyses the effects of innovation cluster on R%D cooperation outcome in terms of private R%D investments. We develop a two-stage strategic R%D game with a duopoly in an innovation cluster. The two firms first conduct cooperatively their R%D decisions in a research joint venture (RJV) before competing in Cournot fashion on the market product. The results show that an innovation cluster improves private R%D investments and social welfare through informational incentives. Then, belonging to an innovation cluster strengthens the willingness to cooperate in R%D and partnership. However, the model also show that innovation clusters can lead to a risk of monopolisation of the market that could be extended even beyond cooperation; this risk thus makes it possible to relativise the expected positive effects of innovation cluster policy on R%D cooperation.

Suggested Citation

  • B.G. Jean Jacques Iritié, 2021. "R%D cooperation performance inside innovation clusters," International Journal of Computational Economics and Econometrics, Inderscience Enterprises Ltd, vol. 11(3), pages 222-251.
    • Handle: RePEc:ids:ijcome:v:11:y:2021:i:3:p:222-251
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