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R&D Cooperation with Entry

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  • Siddhartha Bandyopadhyay
  • Arijit Mukherjee

Abstract

We show the effects of entry by a non-innovating firm on the innovating firms' incentive for undertaking cooperative R&D, highlighting the impliations of knowledge spillover. Entry by a non-innovating firm may either increase or decrease the incentive for cooperative R&D comparted to no entry, depending on the innovating and the non-innovating firms' gains from knowledge spillover. The entry deterrence motive, which has so far been ignored in the literature, plays an important role in determing R&D organisation in our analysis.

Suggested Citation

  • Siddhartha Bandyopadhyay & Arijit Mukherjee, 2011. "R&D Cooperation with Entry," Discussion Papers 11-07, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:11-07
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    Cited by:

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    3. Kabiraj, Abhishek & Kabiraj, Tarun, 2019. "Uncertain R&D Outcomes and Cooperation in R&D," MPRA Paper 94676, University Library of Munich, Germany.

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    More about this item

    Keywords

    Co-oerative R&D; Entry; Knowlege spillover;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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