Cefis, E., Rosenkranz, S. and Weitzel, U. (2009). Effects of coordinated strategies on product and process R&D Journal of Economics, 96(3):193--222.
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Affiliated author
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Publication year2009
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JournalJournal of Economics
Using a game theoretical model on firms' simultaneous investments in product and process R&D, we advance and empirically test hypotheses on the role of externalities on the optimal R&D portfolio of cooperating firms and independently competing firms. We use Community Innovation Survey data on 3,696 Italian manufacturing firms. In line with our model we find that members of a group of firms invest significantly more into product, process, and aggregate R&D than independent firms. Further, their R&D portfolios tend to show a higher product versus process ratio. However, with regard to R&D performance and efficiency we find that independent firms are superior.