An Empirical Evaluation of the Determinants of Research Joint Venture Formation
CEPR Discussion Paper Series No. 2442
Posted: 15 Jul 2000
Date Written: May 2000
This paper empirically analyses the determinants of firm participation in Research Joint Ventures (RJVs). A review of the theoretical literature highlights the difficulty of identifying a set of testable hypotheses. Using a large database of European RJVs, we estimate two participation equations at the firm level using the logit procedure. We find that sectoral R&D intensity positively influences the probability of forming an RJV. The presence of technological spillovers has a positive effect on RJV formation, but this is restricted to R&D intensive industries. A minimum level of industry concentration is needed for RJVs to be formed. Last, firm size and past experience with research cooperation increases the likelihood of RJV formation.
JEL Classification: C25, L13, O31
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