Brunner, Philipp; Letina, Igor; Schmutzler, Armin (2022). Research Joint Ventures: The Role of Financial Constraints
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This paper provides a novel theory of research joint ventures for financially constrained firms. When firms choose R&D portfolios, an RJV can help to coordinate research efforts, reducing investments in duplicate projects. This can free up resources, increase the variety of pursued projects and thereby increase the probability of discovering the innovation. RJVs improve innovation outcomes when market competition is weak and external financing conditions are bad. An RJV may increase the innovation probability and nevertheless lower total R&D costs. RJVs that increase innovation tend to be profitable, but innovation-reducing RJVs also exist. Finally, we compare RJVs to innovation-enhancing mergers.
Item Type: |
Working Paper |
|---|---|
Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics |
UniBE Contributor: |
Brunner, Philipp Ingo, Letina, Igor |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
Language: |
English |
Submitter: |
Julia Alexandra Schlosser |
Date Deposited: |
24 Oct 2022 15:14 |
Last Modified: |
05 Dec 2022 16:26 |
ArXiv ID: |
2207.04856v1 |
BORIS DOI: |
10.48350/173963 |
URI: |
https://boris.unibe.ch/id/eprint/173963 |
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