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R&D Expenditure in a Competitive Landscape: A Game Theoretic Approach

Author

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  • Salman Ali

    (Strategic Management Area Indian Institute of Management Shillong, India)

  • Syed Mizanur Rahman

    (Informatik Area Technische Universit?t Kaiserslautern, Germany)

Abstract

A firm’s R&D (Research & Development) expenditure is dependent on the competitive environment and the industry structure it operates in. The purpose of this paper is to understand the drivers of a firm’s R&D that are related to the industry structure and to predict the nature of R&D expenditure incurred by firms in different scenarios. We scroll through the extant literature on various game theoretic models related to R&D expenditure in different contexts before coming up with a conceptual model that can be tested and developed further. We anticipate this framework can be useful to understand as well as to forecast the R&D spending pattern at the level of individual firms and for a whole industry. Apart from its contribution to literature, we also discuss some prospective managerial and policy implications of this model.

Suggested Citation

  • Salman Ali & Syed Mizanur Rahman, 2020. "R&D Expenditure in a Competitive Landscape: A Game Theoretic Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 19(1), pages 47-60, June.
    • Handle: RePEc:ijb:journl:v:19:y:2020:i:1:p:47-60
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    References listed on IDEAS

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    Cited by:

    1. Salman Ali, 2021. "Focused Strategies During Re-internationalization:Evidence from India," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 20(3), pages 249-263, December.

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    More about this item

    Keywords

    R&D (Research & Development); Industry Structure; Conceptual Model; Game Theory; Symmetric Model; Asymmetric Model.;
    All these keywords.

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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