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Cooperation versus competition in product innovation

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  • Miguel Gonzalez-Maestre
  • Diego Penarrubia

Abstract

This paper analyzes the optimal antitrust policy in the context of a patent race. In a simplified model, we identify the conditions under which allowing cooperation yields greater welfare than imposing competition. In view of our results, we discuss, critically, the current European policy towards R&D cooperation.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 14 (2005)
Issue (Month): 4 ()
Pages: 305-318

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Handle: RePEc:taf:ecinnt:v:14:y:2005:i:4:p:305-318

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Related research

Keywords: Competition; Product innovation; Antitrust policy; Joint ventures; Knowledge externalities;

References

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  1. N. Gregory Mankiw & Michael D. Whinston, 1986. "Free Entry and Social Inefficiency," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 48-58, Spring.
  2. Bresnahan, Timothy F & Greenstein, Shane, 1999. "Technological Competition and the Structure of the Computer Industry," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 47(1), pages 1-40, March.
  3. Glenn C. Loury, 1976. "Market Structure and Innovation," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 256, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  4. Battaggion, Maria R & Garella, Paolo G, 2001. "Joint Venture for a New Product and Antitrust Exemptions," Australian Economic Papers, Wiley Blackwell, Wiley Blackwell, vol. 40(3), pages 247-62, September.
  5. Jeffrey Bernstein & Ishaq Nadiri, 1988. "Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries," Carleton Industrial Organization Research Unit (CIORU), Carleton University, Department of Economics 88-01, Carleton University, Department of Economics.
  6. Masahisa Fujita & Jacques-François Thisse, 2003. "Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Loses from It?," The Japanese Economic Review, Japanese Economic Association, Japanese Economic Association, vol. 54(2), pages 121-145.
  7. Bernstein, Jeffrey I, 1989. "The Structure of Canadian Inter-industry R&D Spillovers, and the Rates of Return to R&D," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 37(3), pages 315-28, March.
  8. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, Elsevier, vol. 31(6), pages 947-967, August.
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