1 / 15

Large-Scale Public-private Partnerships in Japan and the U.S.

Large-Scale Public-private Partnerships in Japan and the U.S. Mariko Sakakibara Associate Professor Anderson Graduate School of Management University of California, Los Angeles. Overview. Government-Sponsored R&D consortia Potential benefits When do we need them

zan
Download Presentation

Large-Scale Public-private Partnerships in Japan and the U.S.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Large-Scale Public-private Partnerships in Japan and the U.S. Mariko Sakakibara Associate Professor Anderson Graduate School of Management University of California, Los Angeles

  2. Overview • Government-Sponsored R&D consortia • Potential benefits • When do we need them • Summary of the past studies • Formation • Performance evaluation • Project execution • Lessons

  3. Government-Sponsored R&D Consortia • Japanese R&D consortia - imitated and emulated • SEMATECH • Alvey, ESPRIT, EURECA in Europe • Current policy issue • National Cooperative Research and Production Act of 1993 • Advanced Technology Program by Commerce Dept. since 1990 • Public policy concern • OECD, ATP

  4. What stimulates innovation? (Firm, Industry) • Technological opportunity • Expected demand size • Appropriability conditions

  5. Potential Benefits of R&D Consortia • Cost sharing • Economies of scale • Skill sharing • Learning • Cooperation -- Correct market failure and underinvestment in R&D • Spence (1984) as a means to internalize externalities • Katz (1986) examined relationship between R&D cooperation and product market competition

  6. R&D Consortia in Japan: Why Important? • Limited researcher mobility • R&D consortia as a means of information exchange • M&As are rare • Limits quick acquisitions of research capabilities • Weak university research • Internal diversification

  7. Formation of R&D Consortia (Japan) • Skill-sharing motive dominates cost-sharing motive (Sakakibara, SMJ 1997) • Relationship between “origin” industries and “destination” industries (Sakakibara, RP 2001) • Analogous to the motives for diversification

  8. Effect on R&D Spending (Japan) • Key concept: diversity (Sakakibara SMJ 1997, JIE 2001) • Skill-sharing R&D consortia are associated with the increase of R&D spending by participants • Cost-sharing R&D consortia are associated with the decrease of R&D spending by participants

  9. Problem of Performance Evaluation • Sample selection problem • Certain consortia perform better, or • Only good firms participate in certain consortia • Common problem of past research to measure the impact of public technology programs (Klette, Moen and Griliches, 2000)

  10. How to Deal with the Selection Problem • Need to utilize multiple dimensions of the data • Firm • Consortium • Time • Participants and non-participants • Same firm, before and after participation • Same firm participate in different consortia

  11. Performance Evaluation (Japan) • Impact on research productivity of participating firms • Note many levels to evaluate performance (project, participants) • Overall impact is positive but small • From econometric analysis (Branstetter and Sakakibara, JIE 1998) • From survey results (Sakakibara, RP 1997)

  12. Performance Evaluation (Japan) • Branstetter and Sakakibara (AER 2002) find: • Spillover potential, measured as technological proximity among member firms, has a positive effect • Product market competition, measured as product market proximity of member firms, has a negative effect • Basic technology -- positive effect

  13. R&D Consortia in the U.S. • Sakakibara and Branstetter (MDE 2003) find: • Consortia have a positive and persistent impact on the ex-post research productivity of participating firms • Consortia outcomes and their characteristics • Positive: potential knowledge spillovers • Larger firms with higher R&D budgets tend to benefit more from participation • These findings are consistent with that obtained from the Japanese consortia

  14. R&D Consortia in the U.S. (cont.) • Dyer, Powell, Sakakibara and Wang (2007) compares alliance formation factors and alliance execution factors • Performance measured as • patent generation • financial contribution • qualitative success • Alliance execution factors explain performance better than alliance formation factors

  15. Lessons • Large-scale PPP is only one of many means to promote innovation • Need to consider available alternatives • Skill-sharing, knowledge spillover potential important • R&D consortia with close competitors or cost-sharing motive are not effective • Good execution is important to facilitate knowledge transfer

More Related