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Spatial competition, strategic R&D and the structure of innovation networks

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  • Wang, Shixun
  • Yang, Lihong

Abstract

We provide a network game to analyze the innovation network structure by incorporating endogenous R&D spillovers and diffusion effects, reconciling the limited types of innovation alliance in practice. In our network model, enterprises can actively choose to invest in R&D or establish links with others to absorb R&D spillovers. We characterize the network structure of enterprises' strategic R&D decisions in different types of spatial equilibrium. We further extend the theoretical framework to generate industry-specific implications under cooperative R&D, location choice, spatial agglomeration, and social capital allocation in innovation networks.

Suggested Citation

  • Wang, Shixun & Yang, Lihong, 2022. "Spatial competition, strategic R&D and the structure of innovation networks," Journal of Business Research, Elsevier, vol. 139(C), pages 13-31.
    • Handle: RePEc:eee:jbrese:v:139:y:2022:i:c:p:13-31
    DOI: 10.1016/j.jbusres.2021.09.037
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