• Corpus ID: 250426228

Research Joint Ventures: The Role of Financial Constraints

  title={Research Joint Ventures: The Role of Financial Constraints},
  author={Philipp Brunner and Igor Letina and Armin Schmutzler},
This paper provides a novel theory of research joint ventures for financially constrained firms. When firms choose R&D portfolios, an RJV can help to coordinate research efforts, reducing investments in duplicate projects. This can free up resources, increase the variety of pursued projects and thereby increase the probability of discovering the innovation. RJVs improve innovation outcomes when market competition is weak and external financing conditions are bad. An RJV may increase the… 

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