On the Stability of Research Joint Ventures: Implications for Collusion

Though there is a body of theoretical literature on research joint ventures (RJV) participation facilitating collusion, empirical tests are rare. Even more so, there are few empirical tests on the general theme of collusion. This note tries to fill this gap by assuming a correspondence between the stability of research joint ventures and collusion. By using data from the US Nation Cooperation Research Act, we show that large RJVs in concentrated industries are more stable and hence more suspect to collusion

The Dynamics of Research Joint Ventures: A Panel Data Analysis

The aim of this paper is to test the determinants of Research Joint Ventures’ (RJVs) group dynamics. We look at entry, exit and turbulence in RJVs that have been set up under the US National Cooperative Research Act, which allows for certain antitrust exemptions in order to stimulate firms to cooperate in R&D. Accounting for unobserved project characteristics and controlling for inter-RJV interactions and industry effects, the Tobit panel regressions show the importance of group and time features for an RJV’s evolution. We further identify an average RJV’s long-term equilibrium size and assess its determining factors. Ours is a first attempt to produce robust stylized facts about cooperational short- and long-term dynamics, an important but neglected dimension in research cooperations

A conceptual overview of What We Know About Social Entrepreneurship

This contribution aims to answer the question what we know about social entrepreneurship by summarizing the current state of knowledge. It first provides a broad description of what social entrepreneurship is. Next, a conceptual overview is given of different perspectives on social entrepreneurship. More specifically, four schools of thought on social entrepreneurship are presented and a description is given of the defining characteristics that distinguish these schools from one another. Subsequently some of the main findings of empirical studies from each of the four schools are summarized and discussed. �

On The Stability of Research Joint Ventures: Implications for Collusion

Though there is a body of theoretical literature on research joint venture (RJV) participation facilitating collusion, empirical tests are rare. Even more so, there are few empirical tests on the general theme of collusion. This note tries to fill this gap by assuming a correspondence between the stability of research joint ventures and collusion. By using data from the U.S. National Cooperation Research Act, we show that large RJVs in concentrated industries are more stable and hence more suspect to collusion. ZUSAMMENFASSUNG - Trotz einer Vielzahl von theoretischen Studien, die zeigen, dass Kollusion durch Forschungsallianzen erleichtert werden kann, fehlen empirische Arbeiten, die diesen Zusammenhang bestätigen. Noch erstaunlicher ist die allgemein geringe Anzahl von empirischen Untersuchungen auf dem Forschungsgebiet der Kollusion. Dieser Aufsatz versucht diese Lücke zu schließen wobei unterstellt wird, dass ein Zusammenhang zwischen der Stabilität von Joint-Ventures und der Entstehung von Kollusionen besteht. Anhand von Daten des U.S. National Cooperation Research Act zeigen wir, dass große Forschungsallianzen in stark konzentrierten Branchen stabiler und daher eher der Absprache verdächtig sind.Research Joint Ventures, Product Market Collusion, Empirical Test

On the Stability of Research Joint Ventures: Implications for Collusion

Though there is a body of theoretical literature on research joint ventures (RJV) participation facilitating collusion, empirical tests are rare. Even more so, there are few empirical tests on the general theme of collusion. This note tries to fill this gap by assuming a correspondence between the stability of research joint ventures and collusion. By using data from the US Nation Cooperation Research Act, we show that large RJVs in concentrated industries are more stable and hence more suspect to collusion.research joint ventures; product market collusion; empirical test

The Dynamics of Research Joint Ventures: A Panel Data Analysis

The aim of this paper is to test the determinants of Research Joint Ventures’ (RJVs) group dynamics. We look at entry, exit and turbulence in RJVs that have been set up under the US National Cooperative Research Act, which allows for certain antitrust exemptions in order to stimulate firms to cooperate in R&D. Accounting for unobserved project characteristics and controlling for inter-RJV interactions and industry effects, the Tobit panel regressions show the importance of group and time features for an RJV’s evolution. We further identify an average RJV’s long-term equilibrium size and assess its determining factors. Ours is a first attempt to produce robust stylized facts about cooperational short- and long-term dynamics, an important but neglected dimension in research cooperations.research joint ventures; dynamics; panel data

The Dynamics of Research Joint Ventures: A Panel Data Analysis

The aim of this paper is to test the determinants of Research Joint Ventures’ (RJVs) group dynamics. We look at entry, exit and turbulence in RJVs that have been set up under the US National Cooperative Research Act, which allows for certain antitrust exemptions in order to stimulate firms to cooperate in R&D. Accounting for unobserved project characteristics and controlling for inter-RJV interactions and industry effects, the Tobit panel regressions show the importance of group and time features for an RJV’s evolution. We further identify an average RJV’s long-term equilibrium size and assess its determining factors. Ours is a first attempt to produce robust stylized facts about cooperational short- and long-term dynamics, an important but neglected dimension in research cooperations. ZUSAMMENFASSUNG - Die Dynamik in Forschungskooperationen: Eine Paneldatenanalyse. Das Ziel dieser Arbeit ist die Analyse der entscheidenden Einflussfaktoren auf die Gruppendynamik in Forschungsgemeinschaften. Wir betrachten Einstieg, Ausstieg und Bewegungen innerhalb von Forschungsgemeinschaften, die unter dem US National Cooperative Research Act gegründet wurden. Der Cooperative Research Act befreit die teilnehmenden Unternehmen von kartell- und monopolrechtlichen Beschränkungen um Anreize für Kooperationen im Bereich Forschung und Entwicklung zu schaffen. Unter Berücksichtigung von unbeobachtbaren Projektcharakteristika und Überwachung von industriespezifischen Effekten und Wechselwirkungen zwischen den Forschungsgemeinschaften zeigt die Tobit-Regression die Wirkung von Gruppen- und Periodenmerkmalen auf die Entwicklung einer Forschungskooperation. Weiterhin wird die durchschnittliche langfristige Größe einer Forschungsgemeinschaft im Gleichgewicht beschrieben und ihre Bestimmungsfaktoren werden untersucht. Der Aufsatz stellt einen ersten Versuch dar, robuste stilisierte Fakten zu kurz- und langfristigen Triebkräften von Kooperationen zu extrahieren um einen Beitrag zu einem zu Unrecht vernachlässigten Teilbereich der Forschung zu leisten.Research Joint Ventures, Dynamics, Panel Data

Does Contract Complexity Limit Opportunities? Vertical Organization and Flexibility

The vertical organization of production entails a range of make-or-buy decisions of intermediate goods that are influenced by the difficulty of writing contracts with a potential supplier. When contracting causes high transaction costs, a firm can decide to vertically integrate the production of the intermediate product. Contract complexity can be measured by decomposing the range of inputs into inputs that are traded on an exchange (low contract complexity), inputs for which reference prices exist (low to medium contract complexity) and other, often relationship-specific inputs (medium to high contract complexity). This inaugural lecture addresses the impact of contract complexity on the growth opportunities of a firm. The present value of growth opportunities are embedded in the market value of a firm, which is a multiple of the firm’ stock price. Examining the relation between the growth opportunities as part of the market value and contract complexity, we find that contract complexity has a negative impact on

The Option Value of Advanced R&D

Existing tools for making R&D investment decisions cannot properly capture the option value in R&D. Since many new products are identified as failures during the R&D stages, the possibility of refraining from market introduction may add a significant value to the NPV of the R&D project. This paper presents new theoretical insight by developing a stochastic jump amplitude model in a real setting. The option value of the proposed model depends on the expected number of jumps and the expected size of the jumps in a particular business. The model is verified with empirical knowledge of current research in the field of multimedia at Philips Corporate Research. This way, the gap between real option theory and the practice of decision making with respect to investments in R&D is diminished

A Model for Evaluating Pharmaceutical R&D Investment Projects under Technical and Economic Uncertainties

This study sets up a compound option approach for evaluating pharmaceutical R&D investment projects in the presence of technical and economic uncertainties. Technical uncertainty is modeled as a Poisson jump that allows for failure and thus abandonment of the drug development. Economic uncertainty is modeled as a standard di¤usion process which incorporates both up-and downward shocks. Practical application of this method is emphasized through a case analysis. We show that both uncertainties have a positive impact on the R&D option value. Moreover, from the sensitivity analysis, we nd that the sensitivity of the option with respect to economic uncertainty and market introduction cost decreases when technical uncertainty increases