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R&D networks among suppliers and manufacturers

Tat Thanh Tran and Vasileios Zikos ()

Economic Modelling, 2017, vol. 60, issue C, 151-161

Abstract: Empirical evidence documents that R&D networks among vertically related firms are very common. Yet there is currently no formal modeling of such networks. In this paper, we develop a model of R&D networks among manufacturers and their suppliers in order to examine which network architectures emerge in equilibrium, and what their implications are from a welfare viewpoint. Our analysis reveals that private incentives to form R&D networks align with societal ones when vertical relations are non-exclusive, but may conflict when vertical relations are exclusive. In terms of policy, stricter antitrust regulation of exclusive vertical relations may, under certain conditions, be desirable from a social viewpoint.

Keywords: R&D collaboration; Networks; Spillovers; Suppliers; Manufacturers (search for similar items in EconPapers)
JEL-codes: L13 L22 O31 (search for similar items in EconPapers)
Date: 2017
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