AN ECONOMIC-ANALYSIS OF COOPERATIVE R-AND-D IN JAPAN

Using cross-industry data from 1988, this study investigates the impact of R&D diversification, R&D resource cost, the importance of basic research, and the existence of foreign competitors on Japanese firms' decisions to engage in cooperative R&D with other firms. My study has found that cooperative R&D is useful for diversification but not used for solving large spillover effects of basic research. The study has also found that sharing costly R&D resources is a strong reason for cooperative R&D. There is also a positive relationship between cooperative R&D and net-exports of the industry.