Arbeitspapier
The hidden costs of R&D collaboration
The paper investigates the barriers to collaboration in terms of hidden transaction costs, by deriving the distribution of the operating costs and sunk costs associated with firms’ investment choices in R&D and innovation activities with or without a research partner. To retrieve both fixed and sunk costs of R&D and innovation activities with or without a research partner, we develop and estimate a structural dynamic monopoly model to quantify the linkages between R&D spending, innovation and cooperation investment choices, and endogenous productivity. We find that the sunk costs of innovations are smaller when collaborating with a research partner; the probability to spend in R&D or to innovate increases with the level of productivity, when collaborating in R&D and innovation; finally, we find that the sunk costs of innovation are 1.5 to 3 times smaller than the sunk costs of R&D. Additionally, the suggested structural framework of firm heterogeneity in cost functions offers a straightforward extension to policy impact evaluation.
- Language
-
Englisch
- Bibliographic citation
-
Series: IPTS Working Papers on Corporate R&D and Innovation ; No. 02/2014
- Classification
-
Wirtschaft
Firm Behavior: Empirical Analysis
Organizational Behavior; Transaction Costs; Property Rights
Transactional Relationships; Contracts and Reputation; Networks
Industry Studies: Manufacturing: General
Management of Technological Innovation and R&D
- Subject
-
R&D cooperation
transaction costs
dynamic structural model.
- Event
-
Geistige Schöpfung
- (who)
-
Amoroso, Sara
- Event
-
Veröffentlichung
- (who)
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European Commission, Joint Research Centre (JRC)
- (where)
-
Seville
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Amoroso, Sara
- European Commission, Joint Research Centre (JRC)
Time of origin
- 2014
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