Collaborative Research and Devalopment: Economic Analysis in the Light of Japanese Experience

This paper Crystallizes some salient features of collaborative R&D among firms competing in the product market with special reference to the Japanese experience. To begin with, we present a succinct overview of R&D collaborations among Japanese firms, capitalizing on the 1982 Fair Trade Commission of Japan (JFTC) Srvey. Then we briefly examine the theoretical properties of collaborative R&D with special emphasis, firstly, on its welfare performance vis-a-vis competitive R&D and, secondly, on the issue of sustainability of this organizational device thorough private incentives. In so doing, the crucial role of information sharing among member firms and R&D spillovers are clarified. Lastly, the policy implications of R&D collaborations with special reference to industrial and competition policies are examined. In this context, the Antimonopoly Act Guidelines Concerning Joint Research and Development, recently published by JFTC, are briefly commented on.