Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261392 
Year of Publication: 
2022
Series/Report no.: 
Working Paper No. 416
Publisher: 
University of Zurich, Department of Economics, Zurich
Abstract: 
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.
Subjects: 
Innovation
Research Joint Ventures
Financial Constraints
Mergers
Intensity of Competition
Licensing
JEL: 
L13
L24
O31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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