Integrating competition policy and innovation policy: the case of R&D cooperation

Georg von Graevenitz

Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems from Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich

Abstract: I develop a model of R&D cooperation with uncertain research outcomes. In this model asymmetric outcomes of R&D competition emerge naturally. Therefore ex-ante and ex-post R&D cooperation can be studied as alternatives for firms. Using this model I compare welfare losses under ex-ante and ex-post R&D cooperation as the degree of product market competition varies. It emerges that the relative size of these welfare losses is monotonically related to the degree of product market competition and the degree of technological opportunity. The implications of these results for the interaction of competition policy and innovation policy are discussed.

Date: 2005-02
New Economics Papers: this item is included in nep-com, nep-ino, nep-mic and nep-tid
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Related works:
Working Paper: Integrating Competition Policy and Innovation Policy: The Case of R&D Cooperation (2005)
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