Working Paper No. 549

Cooperative Product Development and Endogenous Information Sharing

Published: December 15, 2000Pages: 32Keywords: R&D Cooperation; Product Innovation; Information SharingJEL-codes: L00; L10

Cooperative Product Development and Endogenous Information Sharing Antje Baerenss


In this paper, a model of product innovation is developed that endogenizes the degree of cooperation. Two opposing forces affect firm profit in an R&D joint venture. Cooperation increases the quality of the product but it also makes the new products more similar. The increasing substitutability of the product intensifies competition in the production stage. Thus, it may not be optimal to share all of the product information. The basic model is altered to allow for a joint-selling agreement and for tariffs or transport costs. Firms are found to increase R&D cooperation if they are protected from product market competition.

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Social Capital and Health

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Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

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