Jump to ContentJump to Main Navigation

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Friebel, Guido / Mendola, Mariapia / Requate, Till / Tsui, Kevin / Wichardt, Philipp / Zulehner, Christine

4 Issues per year


IMPACT FACTOR 2013: 0.432
5-year IMPACT FACTOR: 0.710

SCImago Journal Rank (SJR): 0.956
Source Normalized Impact per Paper (SNIP): 0.734

VolumeIssuePage

Absorptive Capacity in R&D Joint Ventures When Basic Research Is Costly

Mark R. Frascatore1

1Clarkson University,

Citation Information: Topics in Economic Analysis & Policy. Volume 6, Issue 1, ISSN (Online) 1538-0653, DOI: 10.2202/1538-0653.1572, November 2006

Publication History

Published Online:
2006-11-05

Abstract

``Absorptive capacity" – a firm's ability to assimilate information acquired from other firms – can depend on the amount of basic research it conducts. The optimal expenditures on basic research depend on its costs, and these expenditures in turn affect the amount of applied research a firm conducts to lower production costs. This paper shows that firms' expenditures on basic research can differ from the socially optimal levels, and the difference depends on the magnitude of the basic research costs and the amount of research collaboration between the firms. Policy responses that could bring firm behavior in line with that which is socially desirable are discussed as well.

Keywords: basic research; applied research; absorptive capacity; research joint ventures

Comments (0)

Please log in or register to comment.