The role of R&D technology in asymmetric research joint ventures

Abstract

We characterize asymmetric equilibria in two-stage process innovation games and show that they are prevalent in the different models of R&D technology considered in the literature. Indeed, cooperation in R&D may be accompanied by high concentration in the product market. We show that while such an increase may be profitable, it may be socially inefficient. © Blackwell Publishing Ltd and The University of Manchester, 2006.