Public Policy And R&D When Research Joint Ventures Are Costly
West Virginia University - College of Business & Economics
Mark R. Frascatore
Clarkson University - Department of Economics and Finance
Canadian Journal of Economics, Vol. 33, No. 3, August 2000
In this paper we examine the role of policy when forming a R&D joint venture is costly. Contrary to previous studies, we document an active role for public policy, since the interests of firms are not necessarily aligned with societal interests. The nature of policy, however, depends on the joint venture cost. If it is relatively low, then policy may call for subsidizing the joint venture to encourage collaboration. If forming a joint venture is very costly, however, then there are cases where social welfare is improved if policy encourages R&D competition with no joint venture.
JEL Classification: D43, L13Accepted Paper Series
Date posted: November 13, 2000
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.296 seconds