This paper provides theoretical background to the increasing R&D cooperation among firms and public research institutions. We find that R&D spillovers may impede cooperation among firms or research institutions even when the cost of forming a link is negligible. Further, the presence of...

This paper provides an introduction to the economic analysis of R&D cooperation among firms. Basing on some stylized facts, we survey the relevant theoretical literature in order to discuss the benefits and the costs that firms face when they cooperate in R&D. We then analyze the pros and the...