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Selected problems of interfirm R&D cooperation in the industrial organization literature

Adam Karbowski () and Jacek Prokop ()

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this paper is to analyze selected problems of interfirm R&D cooperation discussed in the industrial organization literature. Analyzed interrelated problems are: (i) stability of interfirm R&D cooperation, (ii) organization of interfirm R&D cooperation, (iii) asymmetries between cooperating firms and (iv) the impact of interfirm R&D cooperation on industry cartelization. On the basis of the literature review it can be concluded that the necessary condition for reaching benefits from interfirm R&D cooperation is to (1) successfully solve the free-rider problem arising in the process of knowledge sharing between collaborating firms and further (2) maintain stable cooperation. Obstacles to stable R&D cooperation can be, however, too low or too high values of asymmetries occurring between cooperating firms. Effective stabilization of interfirm R&D cooperation can be achieved, among others, by licensing of know-how, intensification of knowledge sharing between cooperating firms and various organizational forms of R&D cooperation (research joint-ventures and R&D cartels). From the social welfare perspective it should be also noted that tightening up of an interfirm cooperation at the R&D stage can result in the cartelization of industry (cartel on the market of a final good can be formed).

Keywords: interfirm cooperation; research and development; industrial organization (search for similar items in EconPapers)
JEL-codes: L24 O32 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-com, nep-cse, nep-ino and nep-sbm
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