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R&D Tournaments with Spillovers

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  • Haiwen Zhou

Abstract

This paper studies the influence of uncertainty and spillovers on a contestant's R&D spending. The relationship between market structure and R&D spending is shown to be sensitive to the form of uncertainty that characterizes the R&D process. When reward to the winner is endogenously determined by R&D spending, a contestant's R&D spending may increase with the degree of spillovers. Copyright IAES 2006

Suggested Citation

  • Haiwen Zhou, 2006. "R&D Tournaments with Spillovers," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 34(3), pages 327-339, September.
    • Handle: RePEc:kap:atlecj:v:34:y:2006:i:3:p:327-339
    DOI: 10.1007/s11293-006-9023-0
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    Cited by:

    1. Michael Baye & Dan Kovenock & Casper Vries, 2012. "Contests with rank-order spillovers," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(2), pages 315-350, October.
    2. Kräkel, Matthias & Nieken, Petra & Przemeck, Judith, 2014. "Risk taking and investing in electoral competition," European Journal of Political Economy, Elsevier, vol. 33(C), pages 98-120.
    3. Zhou, Haiwen, 2007. "International R&D Tournaments and Industrial Policy," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 320-338.
    4. Chi Man Leung & Yue Kuen Kwok, 2016. "Real options game models of R&D competition between asymmetric firms with spillovers," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 39(2), pages 259-291, November.
    5. Haiwen Zhou, 2012. "Internal Rebellions and External Threats: A Model of Government Organizational Forms in Ancient China," Southern Economic Journal, John Wiley & Sons, vol. 78(4), pages 1120-1141, April.
    6. Nieken, Petra & Stegh, Michael, 2010. "Incentive Effects in Asymmetric Tournaments Empirical Evidence from the German Hockey League," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 305, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

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    More about this item

    Keywords

    R&D; spillover; tournament; uncertainty; Schumpeterian hypothesis; endogenous reward; L10; O31;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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