Strategic R&D with Knowledge Spillovers and Endogenous Time to Complete
AbstractIt is shown that asymmetry in R&D efficiency between firms is an important factor determining feasibility of the preemption and attrition scenarios in competitive R&D with time to build. Scenarios of attrition and preemption games are most likely to occur when competitors have similar R&D efficiencies. In case of largely asymmetric firms the games of attrition and preemption are very unlikely, thus the R&D duration choices of firms are determined by the actual trade-off between the benefits of earlier innovation and the costs of faster R&D project completion.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2007-38.
Date of creation: 2007
Date of revision:
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R&D Investment; Competition; Preemption; Attrition;
Other versions of this item:
- Peter M. Kort & Ruslan Lukach & Joseph Plasmans, 2007. "Strategic R&D with Knowledge Spillovers and Endogenous Time to Complete," CESifo Working Paper Series 2027, CESifo Group Munich.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-02 (All new papers)
- NEP-COM-2007-09-02 (Industrial Competition)
- NEP-CSE-2007-09-02 (Economics of Strategic Management)
- NEP-INO-2007-09-02 (Innovation)
- NEP-IPR-2007-09-02 (Intellectual Property Rights)
- NEP-KNM-2007-09-02 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2007-09-02 (Microeconomics)
- NEP-PPM-2007-09-02 (Project, Program & Portfolio Management)
- NEP-TID-2007-09-02 (Technology & Industrial Dynamics)
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