Publication: R&D networks: theory, empirics and policy implications
R&D networks: theory, empirics and policy implications
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König, M. D., Liu, X., & Zenou, Y. (2014). R&D networks: theory, empirics and policy implications (No. 142; Working Paper Series / Department of Economics).
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We study a structural model of R&D alliance networks in which firms jointly form R&D collaborations to lower their production costs while competing on the product market. We derive the Nash equilibrium of this game, provide a welfare analysis and determine the optimal R&D subsidy program that maximizes total welfare. We also identify the key firms, i.e. the firms whose exit would reduce welfare the most. We then structurally estimate our model using a panel dataset of R&D collaborations and annual company reports. We use our estimates
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König, M. D., Liu, X., & Zenou, Y. (2014). R&D networks: theory, empirics and policy implications (No. 142; Working Paper Series / Department of Economics).
