Poyago-Theotoky, Joanna; Ferrett, Ben - Centre for Research into Industry, Enterprise, Finance …
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 that a … horizontal agreement always arises. The insiders' merger/RJV choice involves a trade-off: While merger offers certainty that R …