Research Joint Ventures as a Tool of Strategic Trade Policy

Jeong-Eon Kim ()
Additional contact information
Jeong-Eon Kim: Korea Information Strategy Development Institute

East Asian Economic Review, 2005, vol. 9, issue 1, 109-129

Abstract: This paper combines the analysis of the R&D cooperation with the strategic trade policy theory. By introducing endogenous formation of research joint venture, we investigate when the research joint venture works as a tool of strategic trade policy, and provide its welfare implications. If R&D cooperation by forming a research joint venture is made only in the home country and not in the foreign country, the home country benefits but foreign country hurts in terms of national welfare. This is a robust result in the sense that it hoThis paper combines the analysis of the R&D cooperation with the strategic trade policy theory. By introducing endogenous formation of research joint venture, we investigate when the research joint venture works as a tool of strategic trade policy, and provide its welfare implications. If R&D cooperation by forming a research joint venture is made only in the home country and not in the foreign country, the home country benefits but foreign country hurts in terms of national welfare. This is a robust result in the sense that it holds regardless of market structure. We also find that given a research joint venture is formed in each country (i.e., two research joint ventures in the world), both the home and the foreign countries may hurt depending on market structure, which implies a 'prisoner's dilemma' result.

Keywords: Research Joint Venture; R&D Cooperation; Strategic Trade Policy (search for similar items in EconPapers)
JEL-codes: F13 F18 O32 (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.11644/KIEP.JEAI.2005.9.1.138 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0183

Access Statistics for this article

East Asian Economic Review is currently edited by JE Lee

More articles in East Asian Economic Review from Korea Institute for International Economic Policy [30147] 3rd Floor Building C Sejong National Research Complex 370 Sicheong-daero Sejong-si, Korea. Contact information at EDIRC.
Bibliographic data for series maintained by JE Lee ().