GEP Research Paper 01/19
An Econometric Analysis of Trends in Research Joint Venture Activity
A. Link, D. Paton and D. Siegel
Abstract
We estimate an econometric model of the propensity of firms to engage in research joint ventures (RJVs), in order to explain the recent precipitous decline in RJVs filed with the U.S. Department of Justice. We find that RJV activity is inversely related to the competitive position of U.S. firms in global high-technology industries and that the establishment of the U.S. Commerce Department's Advanced Technology Program (ATP) induced a structural change in the propensity of firms to engage in RJVs. Thus, two factors may explain the recent downturn in RJV filings: a substantial improvement in U.S. global performance in high-technology markets and a sharp decline in ATP funding.
Issued in August 2001.
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