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Competition and innovation with horizontal R&D spillovers

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  • Khazabi, Massoud
  • Quyen, Nguyen

Abstract

The paper extends a theoretical framework for analyzing competition and innovation in presence of horizontal spillovers. Introducing two scenarios, it is shown that when firms behave non-cooperatively in both the R&D and production stages the degree of spillover has a negative relationship with the effective and respective R&D expenditures of each firm as well as the level of social welfare. When firms behave cooperatively in the R&D stage, and non-cooperatively in the production stage the relationship between the R&D expenditure of the joint research lab and the number of firms in the market is negative.

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File URL: http://mpra.ub.uni-muenchen.de/39453/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39453.

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Date of creation: 01 Jun 2008
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Handle: RePEc:pra:mprapa:39453

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Related research

Keywords: R&D; Spillovers; Cooperation;

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  1. Suetens, Sigrid, 2005. "Cooperative and noncooperative R&D in experimental duopoly markets," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 23(1-2), pages 63-82, February.
  2. Atallah, G., 2000. "Vertical R&D Sprillovers, Cooperation, Market Structure, and Innovation," Cahiers de recherche, Centre interuniversitaire de recherche en économie quantitative, CIREQ 2000-16, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  3. Blundell, Richard & Griffith, Rachel & van Reenen, John, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 66(3), pages 529-54, July.
  4. R. Cellini & L. Lambertini, 2004. "R&D Incentives and Market Structure: A Dynamic Analysis," Working Papers 497, Dipartimento Scienze Economiche, Universita' di Bologna.
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