Firm heterogeneity and the pattern of R&D collaborations
Pascal Billand (),
Christophe Bravard (),
Jacques Durieu () and
Sudipta Sarangi
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Pascal Billand: GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique
Christophe Bravard: GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019], UGA UFR FEG - Université Grenoble Alpes - Faculté d'Économie de Grenoble - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]
Jacques Durieu: CREG - Centre de recherche en économie de Grenoble - UGA [2016-2019] - Université Grenoble Alpes [2016-2019], UGA UFR FEG - Université Grenoble Alpes - Faculté d'Économie de Grenoble - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]
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Abstract:
We consider an oligopoly setting in which firms form pairwise collaborative links in R&D with other firms. Each collaboration generates a value that depends on the identity of the firms that collaborate. First, we provide properties satisfied by pairwise equilibrium networks and efficient networks. Second, we use these properties in two types of situation (1) there are two groups of firms, and the value of a collaboration is higher when firms belong to the same group; (2) some firms have more innovative capabilities than others. These two situations provide clear insights about how firms heterogeneity affects both equilibrium and efficient networks. We also show that the most valuable collaborative links do not always appear in equilibrium, and a public policy that increases the value of the most valuable links may lead to a loss of social welfare.
Keywords: R&D collaborations; networks; link value heterogeneity (search for similar items in EconPapers)
Date: 2019-05-01
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Citations: View citations in EconPapers (2)
Published in Economic Inquiry, 2019, 57 (October - 4), pp.1896-1914. ⟨10.1111/ecin.12789⟩
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Related works:
Journal Article: FIRM HETEROGENEITY AND THE PATTERN OF R&D COLLABORATIONS (2019) 
Working Paper: Firm heterogeneity and the pattern of R&D collaborations (2018) 
Working Paper: Firm Heterogeneity and the Pattern of R&D Collaborations (2018) 
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-02056322
DOI: 10.1111/ecin.12789
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