Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/77510 
Year of Publication: 
2013
Series/Report no.: 
Working Paper No. 109
Publisher: 
University of Zurich, Department of Economics, Zurich
Abstract: 
In this paper we analyze R&D collaboration networks in industries where firms are competitors in the product market. Firms' benefits from collaborations arise by sharing knowledge about a cost-reducing technology. By forming collaborations, however, firms also change their own competitive position in the market as well as the overall market structure. We analyze incentives of firms to form R&D collaborations with other firms and the implications of these alliance decisions for the overall network structure. We provide a general characterization of both equilibrium networks and endogenous production choices, and compare it to the efficient network architecture. We also allow for firms to differ in their technological characteristics, investigate how this affects their propensity to collaborate and study the resulting network architecture.
Subjects: 
Bonacich centrality
network formation
R&D networks
JEL: 
C63
D83
D85
L22
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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