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Firm Level Behavior in Repeated R&D Races

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Author Info
James M. Zolnierek (Federal Communications Commission)
Abstract

This paper contains an analysis of a quality ladders growth model with firm-level decreasing returns R&D technology. This analysis explains the relationship between competition in R&D races and firm R&D efforts. While competition proves to have a positive effect on industry growth rates, the relationship between competition and individual firm R&D effort is negative and dominated by intertemporal effects. The analysis also demonstrates that differences between the socially optimal and free market growth rates increase as the economy's resource endowment increases.

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File URL: http://college.holycross.edu/eej/Volume24/V24N3P293_308.pdf
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Publisher Info
Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 24 (1998)
Issue (Month): 3 (Summer)
Pages: 293-308
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:eej:eeconj:v:24:y:1998:i:3:p:293-308

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Related research
Keywords: Firm Level; Firm; Firms; Quality; R&D; Technology;

Find related papers by JEL classification:
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Thompson, Peter & Waldo, Doug, 1994. "Growth and trustified capitalism," Journal of Monetary Economics, Elsevier, vol. 34(3), pages 445-462, December. [Downloadable!] (restricted)
  2. Thompson, Peter, 1996. "Technological Opportunity and the Growth of Knowledge: A Schumpeterian Approach to Measurement," Journal of Evolutionary Economics, Springer, vol. 6(1), pages 77-97, February.
  3. Lee, Tom & Wilde, Louis L, 1980. "Market Structure and Innovation: A Reformulation," The Quarterly Journal of Economics, MIT Press, vol. 94(2), pages 429-36, March. [Downloadable!] (restricted)
  4. Loury, Glenn C, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, MIT Press, vol. 93(3), pages 395-410, August. [Downloadable!] (restricted)
    Other versions:
  5. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-51, March. [Downloadable!] (restricted)
    Other versions:
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This page was last updated on 2009-11-18.


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