Cooperation in Product Development and Process R&D Between Competitors

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Cooperation in Product Development and Process R&D Between Competitors

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Title: Cooperation in Product Development and Process R&D Between Competitors
Author: Bourreau, Marc; Dogan, Pinar

Note: Order does not necessarily reflect citation order of authors.

Citation: Bourreau, Marc, and Pinar Dogan. 2010. Cooperation in Product Development and Process R&D Between Competitors. International Journal of Industrial Organization 28(2): 176-190.
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Abstract: In this paper, we first provide a simple framework for cooperation in product development between competitors. We put forward the tradeoff between the benefits obtained through development cost sharing and the cost of intensified competition due to reduced product differentiation, which implies that no cooperation can be an equilibrium outcome. We allow for firms to cooperate partially, i.e., to develop some product components jointly, but not necessarily all components. This enables us to study the factors that may have an effect on the degree of cooperation in product development, both in the presence and in the absence of process R&D. We also analyze the interaction between cooperation decisions on product development and process R&D. By considering a direct link between the two, we show that the degree of cooperation in product development may adversely affect the intensity of cooperation in process R&D.
Published Version: http://dx.doi.org/10.1016/j.ijindorg.2009.07.010
Terms of Use: This article is made available under the terms and conditions applicable to Open Access Policy Articles, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#OAP
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:4863170
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