Ferrett, Ben; Poyago-Theotoky, Joanna - School of Business and Economics, Loughborough University - 2012
exploit complementarities between their R&D activities and, if so, whether to merge or form a research joint venture (RJV). In … contrast to horizontal merger, there is a probability that an RJV contract will fail to enforce R&D sharing. We find, first …, that a horizontal agreement always arises. The insiders’ merger/RJV choice involves a trade-off. While merger offers …