Competitive and Harmonized R & D Policies for International R & D Alliances involving Asymmetric Firms

Rod Falvey*, Khemarat Talerngsri Teerasuwannajak

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

2 Citations (Scopus)

Abstract

We examine R&D policies when a national firm forms an R&D alliance with a foreign competitor. Firms differ in R&D capabilities, select among three forms of R&D alliance and adopt a profit-sharing rule if they coordinate their R&D decisions. When firms coordinate their R&D decisions and governments choose R&D policies independently, R&D taxes are chosen, but if governments harmonize their policies, they decide not to intervene. These policy outcomes affect the types of R&D alliance chosen. Agreements to share R&D information can outperform those with both coordination and sharing as a result of the R&D tax that coordination attracts.

Original languageEnglish
Pages (from-to)302-329
Number of pages28
JournalReview of International Economics
Volume24
Issue number2
DOIs
Publication statusPublished - 1 May 2016

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