Effects of coordinated strategies on product and process R&D

Elena Cefis, Stephanie Rosenkranz*, Utz Weitzel

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)193-222
Number of pages30
JournalJournal of Economics (Wien)
Volume96
Issue number3
DOIs
Publication statusPublished - 1 Apr 2009
Externally publishedYes

Keywords

  • Coordination
  • Cost reduction
  • Efficiency
  • Innovation
  • Product differentiation
  • R&D

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