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Research joint venture with technology transfer
Author(s) -
Ko Chiu Yu,
Zhang Xuyao
Publication year - 2020
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/caje.12423
Subject(s) - joint venture , technology transfer , industrial organization , investment (military) , joint (building) , production (economics) , economics , contrast (vision) , business , microeconomics , commerce , engineering , international trade , computer science , architectural engineering , artificial intelligence , politics , political science , law
Kamien et al. (1992) show that an industry‐wide research joint venture (RJV), compared to the case without any RJV, does not lead to better technological development or a higher consumer surplus. In contrast, we show that every non‐industry‐wide RJV leads to strict improvements in both measures and it also results in higher production efficiency. Furthermore, when technology transfer is possible after making R&D investment, our results continue to hold, and when research efficiency is low, these improvements are further magnified. Governments should encourage innovation through independent collaboration with technology transfer as an alternative to establishing industry‐wide research consortiums.