Environmental research joint ventures among manufactures

This paper explores the reasons that firms form research joint ventures by focusing on a particular type of venture — namely, ventures that are developing new processes to reduce toxic air emissions. The legislative expression of government concern and intent to develop regulations for toxic chemicals prompts firms to join forces in joint ventures that address the problems posed by the chemicals. The cooperative R&D ventures do not appear to be a way for companies to avoid Schumpeterian competitive pressures that stimulate R&D investment. New, primary data at the disaggregated level of a particular type of R&D for particular companies support the belief that cooperative R&D ventures among manufacturing companies may well promote economic efficiency.