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Cooperative R&D with Endogenous Technology Differentiation

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Listed:
  • María José Gil Moltó
  • Nikolaos Georgantzís
  • Vicente Orts

Abstract

We study a nontournament R&D duopoly. Before the standard R&D investment and quantity‐setting stages, we consider a stage in which firms choose their R&D technologies. Spillovers negatively depend on R&D technology differentiation. We show that, in equilibrium, firms will choose identical or very similar R&D processes. Such equilibria may entail less differentiation than would be dictated by social welfare maximization.

Suggested Citation

  • María José Gil Moltó & Nikolaos Georgantzís & Vicente Orts, 2005. "Cooperative R&D with Endogenous Technology Differentiation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(2), pages 461-476, June.
    • Handle: RePEc:bla:jemstr:v:14:y:2005:i:2:p:461-476
    DOI: 10.1111/j.1530-9134.2005.00048.x
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    References listed on IDEAS

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    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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