R&D cooperation in a transaction cost perspective

R&D collaboration is a mode of governance of inter-firm relationships through non-market mechanisms. The objective of this paper is to present a theory-based empirical investigation of R&D co-operation. A framework is developed to analyse the odds of R&D cooperation between buyers and suppliers, drawing both on transaction cost theory and the resource-based theory of the frrm. Several hypotheses are formulated and tested, using data from 689 industrial firms located in the Dutch region of North Brabant. In general, the results of logistic regression analyses support the assumptions of transaction cost theory. Frequent knowledge transfer and moderate and high levels of dependency ('asset specificity') increase the odds of R&D cooperation. In particular, Williamson's assumptions concerning the moderating influences of uncertainty on bilateral governance structure are confrrmed. The extension of the original transaction cost model with several indicators derived from the resourcebased theory of the firm appears to significantly increase the performance of the model