Cooperative R&D and Commitment to A Policy of Know-how Trading

• Type: Article in International Scientific Journal
• Date: 2018

Authors

da Silva, MAPM (Author) FEP

Journal

Title: International Advances in Economic Research

Vol. 24

Pages: 123-133

ISSN: 1083-0898

Publisher: Springer Nature

Indexing

ISI Web of Knowledge - 0 Citations

Scopus - 0 Citations

Other information

Authenticus ID: P-00N-YY6

DOI: 10.1007/s11294-018-9683-y

Abstract (EN): In this paper, we develop a theoretical framework to investigate the impact of adopting a strategy of know-how trading on the degree of research and development (R&D) cooperation. We show that the consequences of cooperation in know-how sharing under the conditions of the model are similar to a policy of cooperation in R&D investments in areas with large spillovers. An industry-wide policy of cooperation among competitors with respect to R&D investment and sharing would simply result in maximal joint profits. This cooperative R&D outcome could be generalized to any degree of spillover other than 100%. In this paper, the commitment to a policy of know-how trading by the participants in an industry is explained by the firm¿s attempt to induce the equilibrium of a single industry-wide cooperative research joint venture. In a repeated game framework, we show that pre-commitments by non-cooperative firms to disclose their own know-how to the industry can be effective in inducing cooperative R&D investments by the participants. © 2018 International Atlantic Economic Society

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 11