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| Volume 10, No. 1,
April 2011 |
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R&D Cost Sharing along the
Supply Chain |
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Mark R. Frascatore |
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Faculty of Economics and
Financial Studies, Clarkson University, U.S.A. |
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| Abstract |
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A model of R&D cost sharing between a
manufacturer and its component supplier is examined. The
manufacturer can pay for a fraction of the supplier's cost-reducing
R&D in return for a lower component price, and both firms can
improve profits. |
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Key words:
R&D cooperation; supply chain collaboration; research joint ventures |
| JEL
classification:
L14; L24 |
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