R&D cooperation performance inside innovation clusters

This paper theoretically analyses the effects of innovation cluster on R&D cooperation outcome in terms of private R&D investments. We develop a two-stage strategic R&D game with a duopoly in an innovation cluster. The two firms first conduct cooperatively their R&D decisions in a research joint venture (RJV) before competing in Cournot fashion on the market product. The results show that an innovation cluster improves private R&D investments and social welfare through informational incentives. Then, belonging to an innovation cluster strengthens the willingness to cooperate in R&D and partnership. However, the model also show that innovation clusters can lead to a risk of monopolisation of the market that could be extended even beyond cooperation; this risk thus makes it possible to relativise the expected positive effects of innovation cluster policy on R&D cooperation.