External vs. internal knowledge acquisition: joint venture activity and R and D intensity

Journal Article · · J. Econ. Bus.; (United States)

OSTI ID:6308235

Friedman, P ^[1]; Berg, S V; Duncan, J

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1. Boston Univ., MA

The validity of interpreting joint ventures as an innovative external substitute for internal R and D expenditures depends upon the specific industry that is being considered. Those industries that do not exhibit such substitution tend to engage in distribution or resource risk-pooling ventures. The data presented indicate that those industries and firms with relatively high R and D intensities can be presumed to be using joint ventures as innovative substitutes. The impact of joint ventures on economy-wide levels of R and D is unclear, although theory suggests that risk reduction or pooling can increase innovative activity. The framework presented in this study, and the empirical tests of substitution, represent steps toward a better understanding of industry decision making. A more-comprehensive examination of choice in similar frameworks should include mergers, licensing, and informal cooperation. 9 references.

• OSTI ID: 6308235
• Journal Information: J. Econ. Bus.; (United States), Journal Name: J. Econ. Bus.; (United States) Vol. 31:2; ISSN JEBUD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
290500 -- Energy Planning & Policy-- Research
Development
Demonstration
& Commercialization
ECONOMIC ANALYSIS
ECONOMICS
INDUSTRY
JOINT ADVENTURE
RESEARCH PROGRAMS
RISK ASSESSMENT