R&D organization and technology transfer

Arijit Mukherjee and Sugata Marjit

No 2001/02, Keele Department of Economics Discussion Papers (1995-2001) from Department of Economics, Keele University

Abstract: We use a duopoly to show how the possibility of licensing ex post R&D affects the decision on R&D organization. We show that whether licensing ex post R&D affects the incentive for doing cooperative R&D depends on the nature of cooperative R&D. If the firms do cooperative R&D to avoid duplication in R&D process then the possibility of licensing ex post R&D may influence the decision on R&D organization provided one firm behaves like a Stackelberg leader in the product market. If the firms behave like Cournot duopolists then the possibility of licensing ex post R&D can influence the decision on R&D when the firms do cooperative R&D to share the cost of doing R&D. In the course of analysis, we show the implication of horizontal product differentiation on the R&D organization and technology licensing. Further, we show the importance of monetary transfer under cooperative R&D.

Keywords: Licensing; Multiple research project; Research joint venture (search for similar items in EconPapers)
JEL-codes: L13 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2001-07
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Published in Group Decision and Negotiation, Vol. 13(3), May 2004, pages 243 - 58. [ doi:10.1023/B:GRUP.0000031079.32373.a4 ]

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