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Restricting R&D Cooperative Networks for Maximum Outcomes

Abstract

Firms always seek to create positional advantages in a network of research and development (R&D). In real R&D cooperation, it is impossible to describe the network as a fully connected network. However, it can exhibit characteristics of complex networks. In this paper, we extend the theoretical outcomes by Goyal and Moraga-Gonzalez through discussing the structural properties on the outcomes. Firstly, in terms of the con- flict between individual and social advantages of the R&D network, how restricting R&D interactions between firms allows convergence of these advantages? Secondly, In regard to the complex interactions between firms, what R&D systems that can preserve and improve the individual and social benefit?

Mohamad Alghamdi

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