Horizontal and vertical R&D cooperation

Joachim Inkmann (Department of Economics and Center of Finance and Econometrics (CoFE), University of Konstanz, Konstanz, Germany)

This paper introduces a second, vertically related industry into the usual one-industry oligopoly framework of cooperative R&D investment between firms operating on the same product market. R&D efforts are affected by intra- and inter-industry R&D spillovers. Horizontal and vertical R&D cooperation scenarios are compared to R&D competition. It turns out that vertical R&D cooperation is usually the only stable equilibrium in the sense that no firm has an incentive to chose any other R&D scenario. Empirical implications concerning the relationship between R&D intensities and R&D spillovers are derived and empirical evidence is given using data of German manufacturing firms.

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Year of publication:	2000
Authors:	Inkmann, Joachim
Publisher:	[Konstanz] : [Zentrum für Finanzen und Ökonometrie, Universität Konstanz]
Subject:	R&D cooperation \| R&D spillovers \| vertical relations \| Industrieforschung \| Industrial research \| Forschungskooperation \| Research collaboration \| Oligopol \| Oligopoly \| Vertikale Integration \| Vertical integration \| Spillover-Effekt \| Spillover effect \| Innovationswettbewerb \| Technology competition \| Schätzung \| Estimation \| Theorie \| Theory \| Deutschland \| Germany