Overcoming innovation barriers along the automotive industry value chain – a framed experiment
The conditions under which R&D resources are allocated either to individual or collective R&D projects are largely unexplored. We contribute to closing this gap by asking under which conditions firms – each of which occupies a unique position along the automotive industry value chain – may overcome innovation barriers and spend scarce resources for collective R&D projects. We use a framed laboratory experiment to scrutinize the influence of different situations on the decision to spend the R&D budget for individual or collective R&D projects. The framing originates from a real-world case study of the massive metal forging industry. We identify constellations that support budget spending for collaborative purposes, e.g., sequential decision-making, which also increase the overall welfare, even in the case of unequally distributed R&D budgets.
Buchmann, T., A. Haering, M. Kudic and M. Rothgang (2024), Overcoming innovation barriers along the automotive industry value chain – a framed experiment. Journal of Innovation Economics & Management, 44, 2, 191-222
DOI: 10.3917/jie.pr1.0166