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On the Choice of R&D Organization

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  • Kabiraj, Abhishek
  • Kabiraj, Tarun

Abstract

This paper seeks to examine, in the context of Marjit (1991, Eco. Lett.) and Mukherjee and Marjit (2004, Gr. Dec. Nego.) models, the effect on the choice of R&D organization if the number of research lab is chosen by the firms optimally under R&D cooperation. Given the optimal form of R&D cooperation, the paper further studies the effect of introducing fee licensing under non-cooperative R&D. We show that our results substantially differ from those in the existing literature. The R&D cost, the success probability, and the size of innovation, all these play a crucial role.

Suggested Citation

  • Kabiraj, Abhishek & Kabiraj, Tarun, 2018. "On the Choice of R&D Organization," MPRA Paper 87503, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:87503
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    References listed on IDEAS

    as
    1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-1137, December.
    2. Paul Belleflamme & Cecilia Vergari, 2011. "Incentives To Innovate In Oligopolies," Manchester School, University of Manchester, vol. 79(1), pages 6-28, January.
    3. Suzumura, Kotaro, 1992. "Cooperative and Noncooperative R&D in an Oligopoly with Spillovers," American Economic Review, American Economic Association, vol. 82(5), pages 1307-1320, December.
    4. Tarun Kabiraj & Srobonti Chattopadhyay, 2015. "Cooperative vs. non-cooperative R&D incentives under incomplete information," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(6), pages 624-632, September.
    5. Michael L. Katz & Carl Shapiro, 1985. "On the Licensing of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 504-520, Winter.
    6. Amir, Rabah & Evstigneev, Igor & Wooders, John, 2003. "Noncooperative versus cooperative R&D with endogenous spillover rates," Games and Economic Behavior, Elsevier, vol. 42(2), pages 183-207, February.
    7. Marjit, Sugata, 1991. "Incentives for cooperative and non-cooperative R and D in duopoly," Economics Letters, Elsevier, vol. 37(2), pages 187-191, October.
    8. Wang, X. Henry, 1998. "Fee versus royalty licensing in a Cournot duopoly model," Economics Letters, Elsevier, vol. 60(1), pages 55-62, July.
    9. Arijit Mukherjee & Sugata Marjit, 2004. "R&D organization and technology transfer," Group Decision and Negotiation, Springer, vol. 13(3), pages 243-258, May.
    10. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-1306, December.
    11. Michael L. Katz, 1986. "An Analysis of Cooperative Research and Development," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 527-543, Winter.
    12. Yi, Sang-Seung, 1999. "Market structure and incentives to innovate: the case of Cournot oligopoly," Economics Letters, Elsevier, vol. 65(3), pages 379-388, December.
    13. Combs, K. L., 1992. "Cost sharing vs. multiple research projects in cooperative R&D," Economics Letters, Elsevier, vol. 39(3), pages 353-357, July.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    R&D organization; Cooperative and non-cooperative research; Technology licensing; Cournot competition;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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