Research joint ventures: The role of financial constraints

B-Tier
Journal: European Economic Review
Year: 2024
Volume: 165
Issue: C

Authors (3)

Brunner, Philipp (not in RePEc) Letina, Igor (not in RePEc) Schmutzler, Armin (Universität Zürich)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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 or external financing conditions are bad. An RJV may increase the innovation probability and nevertheless lower total R&D costs. RJVs that increase innovation also increase consumer surplus and tend to be profitable, but innovation-reducing RJVs also exist. Finally, we compare RJVs to innovation-enhancing mergers.

Technical Details

RePEc Handle
repec:eee:eecrev:v:165:y:2024:i:c:s0014292124000710
Journal Field
General
Author Count
3
Added to Database
2026-01-29