Knowledge Sharing in Bio-Tech Consortia: the Role of the Public Authority

Abstract:
In France, firms and public labs have established several biotech consortia. Their main objective is to create a new innovative process. In this aim firms must share their knowledge. However, firms are not only in a cooperative framework but also in competition. The competition between firms could restrict the knowledge sharing specifically when it involves many spillover effects. A theoretical model with cooperation during the R&D stage is developed that takes into consideration different market structures. Indeed, an asymmetry between firms within the consortium or outside the consortium could impact the behavior regarding the knowledge sharing. The model shows that a high competition between firms decreases the knowledge sharing. Moreover, a firm with a technology advantage keeps knowledge sharing with higher competition than the other firm except if the firm lags behind can rectify her lag thanks to, for example, a public technology transfer. The public authority can boost knowledge sharing of firms through public technology transfers and by being an intermediary for strategic technologies of firms.