An empirical analysis of Japanese government-sponsored R&D consortia involv
ing 213 firms over 13 years shows that the diversity of a consortium is ass
ociated with greater R&D expenditure by participating firms. Diversity is a
lternatively measured by the Montgomery [1982] index, based on 3-digit SIC
codes, and Branstetter and Sakakibara's [1998] modification of the Jaffe [1
986] patent portfolio based index.