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2 J. L. Econ. & Org. 315 (1986)
Research Joint Ventures: An Antitrust Analysis

handle is hein.journals/jleo2 and id is 323 raw text is: Research Joint Ventures: An Antitrust Analysis GENE M. GROSSMAN Woodrow Wilson School, Princeton University CARL SHAPIRO Woodrow Wilson School, Princeton University 1. INTRODUCTION The long-run vitality of the United States economy requires a vigorous and ongoing research and development effort. In many of the dynamic, high- growth industries, continuous innovation is necessary for competitive suc- cess. Some foreign governments already have targeted their entrants in these industries with various tools of public support, including several that are intended to encourage R&D directly or indirectly. For the United States to maintain a viable competitive position in the information-intensive sector, our public policy regarding R&D activities must be coherent and economically sensible. A key element of U.S. policy affecting R&D is the antitrust treatment of research joint ventures (RJVs). Substantial evidence exists to suggest that antitrust uncertainties have discouraged U.S. firms from entering into coop- erative R&D projects.' Attempting to correct this problem, Congress passed We are happy to acknowledge research support from the Federal Trade Commission, the National Science Foundation under Grant No. SES-8408622, and the National Bureau of Eco- nomic Research. Howard Chang provided outstanding research assistance. Discussions with Michael Katz, Janusz Ordover, and Robert Willig have improved our understanding of research joint ventures. Oliver Williamson and an anonymous referee were of great help to us in improving the paper. 1. The Senate Judiciary Committee noted in its 1984 investigation (see U.S. Code Congres- sional and Administrative News, Legislative Histories, 4: 3106) that antitrust challenges have been frequently cited by industry to explain the reluctance to undertake such activity. The Journal of Law, Economics, and Organization vol. 2, no. 2 Fall 1986 © 1986 by Yale University. All rights reserved. ISSN 8756-6222

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