R&D Spillovers, Innovation, and Entry
AbstractThe paper extends a theoratical framework to analyze the impact of R&D spillovers on entry and the resulting equilibrium market structure. It is shown that the degree of spillovers plays a fundamental role on the number of firms entering the market, their R&D activities, and social welfare. The analysis suggests that social welfare is maximized at some intermediate degree of spillovers. The policy implication of this result is that neither complete protection of intellectual property right nor lax enforcement of patent laws is socially optimal.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39460.
Date of creation: 01 Jul 2011
Date of revision:
R&D; Entry; Spillovers;
Find related papers by JEL classification:
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
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- ATALLAH, Gamal, 2000.
"Vertical R&D Sprillovers, Cooperation, Market Structure, and Innovation,"
Cahiers de recherche
2000-16, Universite de Montreal, Departement de sciences economiques.
- Gamal Atallah, 2002. "Vertical R&D Spillovers, Cooperation, Market Structure, and Innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(3), pages 179-209.
- Gamal Atallah, 2000. "Vertical R&D Spillovers, Cooperation, Market Structure, And Innovation," Industrial Organization 0004009, EconWPA.
- Atallah, G., 2000. "Vertical R&D Sprillovers, Cooperation, Market Structure, and Innovation," Cahiers de recherche 2000-16, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Gamal Atallah, 2000. "Vertical R&D Spillovers, Cooperation, Market Structure, and Innovation," CIRANO Working Papers 2000s-54, CIRANO.
- Gamal Atallah, 2006.
"Entry Deterrence Through Fixed Cost-Reducing R&D,"
0605E, University of Ottawa, Department of Economics.
- Erkal, Nisvan & Piccinin, Daniel, 2010.
"Cooperative R&D under uncertainty with free entry,"
International Journal of Industrial Organization,
Elsevier, vol. 28(1), pages 74-85, January.
- Poyago-Theotoky, Joanna, 1995. "Equilibrium and Optimal Size of a Research Joint Venture in an Oligopoly with Spillovers," Journal of Industrial Economics, Wiley Blackwell, vol. 43(2), pages 209-26, June.
- Suetens, Sigrid, 2005. "Cooperative and noncooperative R&D in experimental duopoly markets," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 63-82, February.
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