Research joint ventures: The role of financial constraints

Arbeitspapier

This paper provides a novel theory of research joint ventures for financially constrained firms. When firms choose R&D portfolios, an RJV can help to coordinate research efforts, reducing investments in duplicate projects. This can free up resources, increase the variety of pursued projects and thereby increase the probability of discovering the innovation. RJVs improve innovation outcomes when market competition is weak and external financing conditions are bad. An RJV may increase the innovation probability and nevertheless lower total R&D costs. RJVs that increase innovation tend to be profitable, but innovation-reducing RJVs also exist. Finally, we compare RJVs to innovation-enhancing mergers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 22-05

Classification and Topics

• Classification: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Contracting Out; Joint Ventures; Technology Licensing ; Innovation and Invention: Processes and Incentives
• Subject: Innovation ; Research Joint Ventures ; Financial Constraints ; Mergers ; Intensity of Competition ; Licensing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Brunner, Philipp ; Letina, Igor ; Schmutzler, Armin
• Event: Veröffentlichung
• (who): University of Bern, Department of Economics
• (where): Bern
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/266510
• Last update: 10.03.2025, 11:41 AM CET