Albert N. Link
Department of Economics
University of North Carolina at Greensboro
Greensboro NC 27412
NBER Working Papers and Publications
|August 2017||The Structure and Performance of U.S. Research Joint Ventures: Inferences and Implications from the Advanced Technology Program|
with James D. Adams: w23734
Research Joint Ventures (RJVs) are projects that combine the research resources of different firms. A sample of RJVs supported by the U.S. Advanced Technology Program shows that the projects yield revenues that are far less than costs. Related to this point, the RJVs are subject to commercialization delays, loss of intellectual property, and product market competition. Partner firms undertake joint research, but if they commercialize at all, they do so separately, to avoid splitting of revenues from new products. Ultimately, difficulties with the RJVs occur because frequently, firms are potential competitors.