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R&D Spillovers through RJV Cooperation

Author

Listed:
  • Albert Banal-Estañol
  • Tomaso Duso
  • Jo Seldeslachts
  • Florian Szücs
Abstract
We investigate how R&D spillovers propagate across firms linked through Research Joint Ventures (RJVs). Building on the framework developed by ? which considers the opposing effects of knowledge spillovers and product market rivalry, we extend the model to account for RJV cooperation. Since the firm’s decision to join a RJV is endogenous, we build a model of RJV participation. The outcome equations and RJV participation are then jointly estimated in an endogenous treatment regression model. Our main findings are that the adverse effects of product market rivalry are mitigated if firms cooperate in RJVs; and that RJV participation allows firms to better absorb technological spillovers and, thus, create value.

Suggested Citation

  • Albert Banal-Estañol & Tomaso Duso & Jo Seldeslachts & Florian Szücs, 2022. "R&D Spillovers through RJV Cooperation," Working Papers of Department of Management, Strategy and Innovation, Leuven 690218, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    • Handle: RePEc:ete:msiper:690218
    Note: paper number MSI_2202
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    Cited by:

    1. Banal-Estanol, Albert & Seldeslachts, Jo & Vives, Xavier, 2022. "Ownership Diversification and Product Market Pricing Incentives," CEPR Discussion Papers 17686, C.E.P.R. Discussion Papers.
    2. Huseyin Emre Sayici & Mehmet Fatih Ulu, 2023. "Economic Effects of R&D Supports," Koç University-TUSIAD Economic Research Forum Working Papers 2308, Koc University-TUSIAD Economic Research Forum.
    3. Tomaso Duso & Alexander Schiersch, 2022. "Let's Switch to the Cloud: Cloud Adaption and Its Effect on IT Investment and Productivity," Discussion Papers of DIW Berlin 2017, DIW Berlin, German Institute for Economic Research.
    4. Becker, Bettina & Roper, Stephen & Vanino, Enrico, 2023. "Assessing innovation spillovers from publicly funded R&D and innovation support: Evidence from the UK," Technovation, Elsevier, vol. 128(C).
    5. Foreman-Peck, James & Zhou, Peng, 2023. "Specialisation precedes diversification: R&D productivity effects," Research Policy, Elsevier, vol. 52(7).

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    More about this item

    Keywords

    Spillovers; Research Joint Ventures; R&D; Market Value;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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