Title: R&D cooperation performance inside innovation clusters

Authors: B.G. Jean Jacques Iritié

Addresses: Department of Business Administration and Applied Economics, National Polytechnic Institute Félix Houphouet Boigny (INP-HB), B.P. 1093 Yamoussoukro, Côte d'Ivoire

Abstract: This paper theoretically analyses the effects of innovation cluster on R&D cooperation outcome in terms of private R&D investments. We develop a two-stage strategic R&D game with a duopoly in an innovation cluster. The two firms first conduct cooperatively their R&D decisions in a research joint venture (RJV) before competing in Cournot fashion on the market product. The results show that an innovation cluster improves private R&D investments and social welfare through informational incentives. Then, belonging to an innovation cluster strengthens the willingness to cooperate in R&D and partnership. However, the model also show that innovation clusters can lead to a risk of monopolisation of the market that could be extended even beyond cooperation; this risk thus makes it possible to relativise the expected positive effects of innovation cluster policy on R&D cooperation.

Keywords: innovation cluster; research joint venture; RJV; localised knowledge spillovers; LKS; informational incentives; R&D cooperation performance.

DOI: 10.1504/IJCEE.2021.116386

International Journal of Computational Economics and Econometrics, 2021 Vol.11 No.3, pp.222 - 251

Received: 01 Oct 2018
Accepted: 20 Dec 2019
Published online: 22 Jul 2021 *

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