Poyago-Theotoky, Joanna; Ferrett, Ben - Agricultural and Applied Economics Association - AAEA - 2012
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 nd that a horizontal … agreement always arises. The insiders' merger/RJV choice involves a trade-o : While merger o ers certainty that R …