Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43219
Authors: 
Herbst, Patrick
Walz, Uwe
Year of Publication: 
2009
Series/Report no.: 
CFS Working Paper 2009/06
Abstract: 
Suppliers play a major role in innovation processes. We analyze ownership allocations and the choice of R&D technology in vertical R&D cooperations. Given incomplete contracts on the R&D outcome, there is a tradeoff between R&D specifically designed towards a manufacturer (increasing investment productivity) and a general technology (hold-up reduction). We find that the market solution yields the specific technology in too few cases. More intense product market competition shifts optimal ownership towards the supplier. The use of exit clauses increases the gains from the collaboration.
Subjects: 
Managing Innovations
Vertical R&D
R&D Collaboration
Rent-Seeking
JEL: 
L22
L24
O31
O32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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