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A simple game-theoretical framework for studying R&D expenditures and R&D cooperation

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  • Kaiser, Ulrich

Abstract

This paper derives a three stage Cournot duopoly game for research collaboration, research expenditures and product market competition. The amount of knowledge firms can absorb is made dependent on their own research efforts, e.g. firms? absorptive capacity is treated as an endogenous variable. It is shown that cooperating firms invest more in R&D than non?cooperating firms if spillovers are sufficiently large. The degree of market competition is a key determinant of the effects of research cooperation on research efforts, implying that existing models which assume perfect competition might be too restrictive.

Suggested Citation

  • Kaiser, Ulrich, 2001. "A simple game-theoretical framework for studying R&D expenditures and R&D cooperation," ZEW Discussion Papers 01-22, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5377
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    Cited by:

    1. Uschi Backes-Gellner & Frank Maass & Arndt Werner, 2005. "On the explanation of horizontal, vertical and cross-sector R&D partnerships – evidence for the German industrial sector," Working Papers 0053, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Mar 2005.

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    More about this item

    Keywords

    research cooperation; research expenditures; knowledge spillovers;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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