An empirical analysis of Japanese government-sponsored R&D consortia involving 213 firms over 13 years shows that the diversity of a consortium is associated with greater R&D expenditure by participating firms. Diversity is alternatively measured by the Montgomery (1982) index, based on 3-digit...

Despite the existence of much theoretical research analyzing the potential benefits and costs of R&D consortia, there has been little corresponding empirical work on their efficacy. In this paper, the authors undertake a large-sample econometric study of Japanese government-sponsored research...