Cooperative Product Development and Endogenous Information Sharing

Antje Baerenss
Additional contact information
Antje Baerenss: Europe Economics, Postal: Chancery House, 53-64 Chancery Lane, London, WC2A 1QU, U.K.,

No 549, Working Paper Series from Research Institute of Industrial Economics

Abstract: In this paper, a model of product innovation is developed that endogenizes the degree of cooperation. Two opposing forces affect firm profit in an R&D joint venture. Cooperation increases the quality of the product but it also makes the new products more similar. The increasing substitutability of the product intensifies competition in the production stage. Thus, it may not be optimal to share all of the product information. The basic model is altered to allow for a joint-selling agreement and for tariffs or transport costs. Firms are found to increase R&D cooperation if they are protected from product market competition.

Keywords: R&D cooperation; Product innovation; Information sharing (search for similar items in EconPapers)
JEL-codes: L00 L10 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2000-12-15
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ifn.se/Wfiles/wp/WP549.pdf (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:hhs:iuiwop:0549

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson (elisabeth.gustafsson@ifn.se).