Endogenous technology sharing in R&D intensive industries

Derek J. Clark and Jan Sand

Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), 2010, vol. 4, No 2010-1, 48 pages

Abstract: This paper analyses endogenous formation of technology sharing coalitions with asymmetric firms. Coalition partners produce complementary technology advancements, although firms do not co-operate on R&D investment level or in the product market. The equilibrium coalition outcome is either between the two most efficient firms, or a coalition with all three firms. The two-firm coalition is the preferred outcome of a welfare maximising authority if ex ante marginal cost is sufficiently high, and the threefirm coalition is preferred otherwise. Furthermore, we show that the equilibrium outcomes result in the lowest total R&D investment of all possible outcomes. Aircraft engine manufacturing provides a case study, and indicates the importance of antitrust issues as an addition to the theory.

Keywords: R&D; endogenous coalitions; asymmetric firms (search for similar items in EconPapers)
JEL-codes: L11 L13 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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https://www.econstor.eu/bitstream/10419/29632/1/616556527.pdf (application/pdf)

Related works:
Working Paper: Endogenous Technology Sharing in R&D Intensive Industries (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:20101

DOI: 10.5018/economics-ejournal.ja.2010-1

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