Uncertain R&D Outcomes and Cooperation in R&D

The present paper provides a brief survey of some of the papers dealing with R&D uncertainty. This helps us identify which factors are more favorable for cooperative R&D and which factors are not. The paper provides the analysis under a unified framework. We take the classic paper by Marjit (1991) as the benchmark case, and then proceeds to examine whether, or to what extent, Marjit result will undergo a change with respect to different assumptions related to R&D investment.