Endogenous specialization of heterogeneous innovative activities of firms under technological spillovers
AbstractThis paper proposes a reduced form model of dynamic duopoly in the context of heterogeneous innovations framework. Two agents invest into product and process innovations simultaneously. Every newly introduced product has its own dimension of process-improving innovations and there is a continuum of possible new products. In the area of process innovations the costless imitation effect is modelled while in the area of product innovations agents are cooperating with each other. As a result the specialization of innovative activity is observed. This specialization arises from strategic interactions of agents in both fields of innovative activity and is endogenously defined from the dynamics of the model.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 35424.
Date of creation: 15 Dec 2011
Date of revision: 15 Dec 2011
Innovations; Dynamics; Multiproduct; Spillovers; Distributed Control; Differential Games;
Find related papers by JEL classification:
- L0 - Industrial Organization - - General
- C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
- 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-2012-01-03 (All new papers)
- NEP-COM-2012-01-03 (Industrial Competition)
- NEP-CSE-2012-01-03 (Economics of Strategic Management)
- NEP-INO-2012-01-03 (Innovation)
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