Asymmetric research joint ventures and market concentration

This paper studies two asymmetric R and D cooperation structures. In the first structure some films in an industry organize a research joint venture (RJV) cartel while the remainder engage in independent R and D. In the other structure, each firm joins one of a number of competing RJV cartels. The findings indicate that cooperative R and D may lead to a more concentrated post-innovation industry than standard R and D competition owing to the technology advantage of the (large) cartel obtained from R and D cooperation. Under certain conditions these asymmetric structures are more efficient, but they result in a redistribution of income towards the firms in the (large) cartel. JEL Classification Numbers: D43, L13, O31.