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Research joint ventures in an international economy

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  • Massimo Motta

Abstract

D'Aspremont and Jacquemin's (1988) model is extended to study alternative configurations of research agreements in a two--country integrated world economy. Under unambiguous conditions on spillovers we show that: 1) Allowing national firms to cooperate in R\&D confers them an advantage over foreign rivals, an effect similar to R\&D subsidies. 2) In a policy game, each government would allow national cooperative agreements. 3) Contrary to other trade policies which lead to a ``prisoners' dilemma'' result, welfare in both countries increases when they both allow R\&D cooperation. 4) Welfare is even higher if a generalized (international) coalition is formed.

Suggested Citation

  • Massimo Motta, 1995. "Research joint ventures in an international economy," Economics Working Papers 147, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:147
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    Cited by:

    1. Arghya Ghosh & Jonathan Lim, 2013. "Cooperative and non-cooperative R&D and trade costs," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(6), pages 942-958, September.
    2. Rod Falvey & Khemarat Talerngsri Teerasuwannajak, 2016. "Competitive and Harmonized R&D Policies for International R&D Alliances involving Asymmetric Firms," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 302-329, May.
    3. Leahy, Dermot & Neary, J. Peter, 2007. "Absorptive capacity, R&D spillovers, and public policy," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1089-1108, October.
    4. Julie DeCourcy, 2007. "Research Joint Ventures And International Competitiveness: Evidence From The National Cooperative Research Act," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(1), pages 51-65.
    5. Ya-Chin Wang, 2016. "R&D Policy Involving Consumer-Friendly Strategy: Cooperative and Non-Cooperative R&D," Journal of Industry, Competition and Trade, Springer, vol. 16(2), pages 257-272, June.
    6. Kim, Jeong-Eon, 2003. "Three essays on welfare implications of R&D policies in the presence of spillovers," ISU General Staff Papers 200301010800001597, Iowa State University, Department of Economics.
    7. Morasch, Karl, 2000. "Strategic alliances: a substitute for strategic trade policy?," Journal of International Economics, Elsevier, vol. 52(1), pages 37-67, October.
    8. Aikaterini KOKKINOU, 2010. "Economic growth, innovation and collaborative research and development activities," Management & Marketing, Economic Publishing House, vol. 5(1), Spring.
    9. T. Huw Edwards & Ben Ferrett & Daniel Gravino, 2020. "Inter‐firm R&D collaboration within and across national borders," The World Economy, Wiley Blackwell, vol. 43(3), pages 810-826, March.
    10. Julie DeCourcy, 2005. "Cooperative R&D and strategic trade policy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 546-573, May.

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