The paper surveys the main forces affecting the incentive to cooperate in Ramp;D and the effects of cooperation on the incentive to innovate. We consider both a complete and an incomplete contract framework. In addition, we consider several forms of cooperative agreements, and we study in what...

In a general setting with uncertainty and spillovers in R&D activity, we consider the incentive to cooperate among firms at any or all of the following three stages. Firms can jointly agree on the level of R&D expenditures, they can set up joint research facilities, and/or they can engage in an...