The paper analyzes the profitability of RDcooperation under asymmetric spillovers. It is shown that a firm prefers RDcompetition to RJV cartelization when its own spillover rate is low and the spillover rate of its competitor is high. While it prefers RDcartelization to RJV cartelization when...

A patent challenger who defeats a patent wins spoils that it must share with the world, including all its competitors. This forced sharing undercuts an alleged infringer's incentive to stay in the fight to the finish - especially if the patent owner offers an attractive settlement. Too many...

The decision to cooperate within R&D joint ventures is often based on `expert advice.' Such advice typically originates in a due diligence process, which assesses the R&D joint venture's profitability, for example, by appraising the achievability of synergies. We show that if the experts who...

This paper reviews the theoretical literature concerning the welfare effects of Research Joint Ventures. The analysis pays attention on both the most debated questions and the topics not yet covered in the literature. The study suggests the existence of two main streams: one positive, the other...

Every year thousands of firms are engaged in research joint ventures (RJV), where all knowledge gained through R&D is shared among members. Most of the empirical literature assumes members are non-cooperative in the product market. But many RJV members are rivals leaving open the possibility...

The model studies information sharing and the stability of cooperation in cost reducing Research Joint Ventures (RJVs). In a three-stage game-theoretic framework, firms decide on participation in a RJV, information sharing along with R&D expenditures, and output. An important feature of the...

We show that the presumed incompatibility of R&D and competition in Spence (1984) is not fundamental, but hinges on a critical modeling choice. Specifically, we show that for a widely used class of R&D technology, that is, the functional form mapping R&D effort into cost reduction, the...

[ENGLISH] This paper reviews the theoretical literature concerning the welfare effects of research joint ventures. The analysis pays attention to both the most debated questions and the topics not yet covered in the literature. The study suggests the existence of two main streams: one positive,...

We reconsider the justifications of R&D subsidies by Spencer and Brander (1983) and others by allowing firms to pool R&D investments and license innovations. In equilibrium R&D joint ventures are formed and licensing occurs in a way that eliminates the strategic benefits of R&D investment in the...

We characterize asymmetric equilibria in two-stage process innovation games and show that they are prevalent in the different models of R&D technology considered in the literature. Indeed, cooperation in R&D may be accompanied by high concentration in the product market. We show that while such...