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Research Collaborations with Sequential Investments

Bibliographic Data

ID9725405
AuthorsChristoph Lülfesmann (University of Bonn, corresponding author)
Year2004
Volume71
Issue282
Pages241-259
Publication date2004-05-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.0013-0427.2004.00368.x
OpenAlexW2129317918
LanguageEN
Citations received1
References cited15

The paper investigates research collaborations where one partner performs R&D at an initial stage whereas the second partner subsequently invests in the success of a joint project. We allow for any degree of uncertainty of the project's success. It is shown that exclusive ownership of one partner necessarily triggers suboptimal initial research even if renegotiation is admitted. Conversely, joint ownership in form of an equity joint venture or a contingent ownership structure (an option‐to‐buy arrangement) may facilitate an efficient outcome. In equilibrium, the initially chosen governance structure is always renegotiated which conforms well with empirical evidence

Business · Commerce · Corporate governance · Economics · Equity (law) · Industrial organization · Joint (building) · Joint venture · Microeconomics · Outcome (game theory) · Political science · Capital Investment and Risk Analysis · Climate Change Policy and Economics · Finance · Innovation Policy and RD

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    Open Access•John Hagedoorn, Albert N Link et al.•Research Policy•2000

  • The Management of Innovation

    P Aghion, J Tirole•The Quarterly Journal of Economics•1994

  • The Costs and Benefits of Ownership

    Sanford J Grossman, Oliver Hart et al.•Journal of Political Economy•1986

Unique citing works1
Citations per year0,11
Citation span2017 - 2017 (1)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 1
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