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Knowledge sharing in cooperative research and development
Author(s) -
Sakakibara Mariko
Publication year - 2003
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.1080
Subject(s) - competition (biology) , spillover effect , absorptive capacity , welfare , affect (linguistics) , government (linguistics) , knowledge sharing , business , economics , microeconomics , industrial organization , management , psychology , biology , market economy , ecology , linguistics , philosophy , communication
This article examines the effects of knowledge sharing or endogenous spillovers among R&D consortia participants on R&D competition when R&D enhances a firm's absorptive capacity. A three‐stage model illustrates how different compositions of R&D consortia affect endogenous spillover rates and R&D spending of participants. When consortium participants possess complementary knowledge, the model suggests that participation increases the degree of knowledge sharing and intensifies firms' R&D efforts to learn from other members compared with the case when no cooperation takes place. This type of R&D consortia is welfare enhancing, justifying government support for these projects. Copyright © 2003 John Wiley & Sons, Ltd.