Research joint ventures : the role of financial constraints

Philipp Brunner, Igor Letina and Armin Schmutzler

This paper provides a novel theory of research joint ventures for financially constrained firms. When firms choose R&D portfolios, an RJV can help to coordinate research efforts, reducing investments in duplicate projects. This can free up resources, increase the variety of pursued projects and thereby increase the probability of discovering the innovation. RJVs improve innovation outcomes when market competition is weak or external financing conditions are bad. An RJV may increase the innovation probability and nevertheless lower total R&D costs. RJVs that increase innovation also increase consumer surplus and tend to be profitable, but innovationreducing RJVs also exist. Finally, we compare RJVs to innovation-enhancing mergers.

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Year of publication:	[2023] ; Revised version, July 2023
Authors:	Brunner, Philipp ; Letina, Igor ; Schmutzler, Armin
Publisher:	Zurich : University of Zurich, Department of Economics
Subject:	Forschungskooperation \| Research collaboration \| Industrieforschung \| Industrial research \| Joint Venture \| Joint venture \| Unternehmenskooperation \| Inter-firm cooperation \| Theorie \| Theory

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Extent:	1 Online-Ressource (circa 48 Seiten) Illustrationen
Series:	Working paper series / University of Zurich, Department of Economics. - Zurich : [Verlag nicht ermittelbar], ISSN 1664-705X, ZDB-ID 2625625-3. - Vol. no. 416
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.5167/uzh-219400 [DOI] hdl:10.5167/uzh-219400 [Handle]
Classification:	L13 - Oligopoly and Other Imperfect Markets ; L24 - Contracting Out; Joint Ventures ; O31 - Innovation and Invention: Processes and Incentives
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014307999