RESEARCH JOINT VENTURES AND INTERNATIONAL COMPETITIVENESS: EVIDENCE FROM THE NATIONAL COOPERATIVE RESEARCH ACT

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Abstract:

In the USA, firms engaged in cooperative research and development (R&D) are accorded more lenient antitrust treatment by the National Cooperative Research Act (NCRA). An objective of the NCRA was to give American firms a competitive advantage over foreign firms. This article addresses whether the NCRA has had that effect. Analysis of panel data containing information on industry trade balance and cooperative R&D reveals that the trade balance in industries with participants in cooperative R&D is approximately $620 million higher than the trade balance in industries without participants in cooperative R&D. This suggests the possibility of improved competitiveness.

Keywords: Competitiveness; Cooperative R&D; NCRA; Trade balance

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/10438590600661822

Affiliations: Department of Economics, Trinity University, One Trinity Place, San Antonio, TX, USA

Publication date: January 1, 2007

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