Structures ďentreprise, R&D et incitations Corporate structure, R&D and incentives

Jean Tirole*, Etienne Turpin

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


The deregulation of the telecommunications industry and its convergence with the broadcasting and computer industries have led to a variety of alliances within the redefined sector. The paper uses recent developments in the economics of a corporate structure to provide some tools for an analysis of these moves. It focuses on the firm's choice of internal organization, boundaries and alliances. After a brief recap of mergers and alliances in the three industries, the paper reviews the three possible motivations for such moves : efficiency, acquisition of market power, and objectives of entrenched managers. It then uses a formal model to provide a definition for the usually loose concept of core competency and to determine a firm's legal boundaries and sphere of influence as a function of its headquarters' ability to oversee activities. Last, it derives some implications of the analysis for the organization of R&D.

Original languageFrench
Pages (from-to)165-184
Number of pages20
JournalAnnales Des Télécommunications
Issue number1
StatePublished - Jan 1995
Externally publishedYes


  • Audiovisual
  • Computer industry
  • Economic analysis
  • Enterprise organization
  • Firm cooperation
  • Firm pool
  • Firm strategy
  • Research and development
  • Telecommunication industry

ASJC Scopus subject areas

  • Electrical and Electronic Engineering

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