Volume 10, No. 1, April 2011

 

R&D Cost Sharing along the Supply Chain
Mark R. Frascatore
Faculty of Economics and Financial Studies, Clarkson University, U.S.A.
Abstract
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.
Key words: R&D cooperation; supply chain collaboration; research joint ventures
JEL classification: L14; L24

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