R_and_D_collaboration_World_Economy-4.pdf (642.18 kB)
Download fileInter-firm R&D collaboration within and across national borders
journal contribution
posted on 2019-06-03, 13:22 authored by Huw EdwardsHuw Edwards, Ben FerrettBen Ferrett, D. GravinoWe set up a model to investigate the strategic aspect of a firm’s
incentive to collaborate in cost-reducing R&D with either a local or a
foreign partner. We argue that collaboration with a foreign firm is preferred to collaboration with a local firm if the extra profits generated by
a foreign collaboration exceed the additional cost of coordinating collaboration across national borders. We show that foreign collaboration is
more likely the bigger the home-market-size of the foreign firm and, given
certain conditions, the higher the international trade cost. We also show
that whenever a foreign collaboration arises in equilibrium, it is efficient
(i.e. world-welfare-maximising); and that there are cases where: (i) a
foreign collaboration would be efficient but a local collaboration emerges
in equilibrium; and (ii) an efficient foreign collaboration emerges in equilibrium, but one of the countries would prefer a local collaboration. We
briefly consider the policy implications of these findings.
History
School
- Business and Economics
Department
- Economics
Published in
The World EconomyVolume
43Issue
3Pages
810 - 826Citation
EDWARDS, T.H., FERRETT, B.E. and GRAVINO, D., 2019. Inter-firm R&D collaboration within and across national borders. The World Economy, 43 (3), pp.810-826.Publisher
WileyVersion
- AM (Accepted Manuscript)
Rights holder
© John Wiley & Sons LtdPublisher statement
This is the peer reviewed version of the following article: EDWARDS, T.H., FERRETT, B. and GRAVINO, D., 2019. Inter-firm R&D collaboration within and across national borders. The World Economy, 43 (3), pp.810-826, which has been published in final form at https://doi.org/10.1111/twec.12894. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.Acceptance date
2019-10-15Publication date
2019-10-18Copyright date
2019Notes
This paper was presented at XIX Conference on International Economics, Castellon, Spain, 28 Jun 2018 – Fri, 29 Jun 2018.ISSN
0378-5920Publisher version
Language
- en