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R&D Spillovers and Endogenous Absorptive Capacity


  • Ulrich Kaiser


This paper derives a three-stage Cournot duopoly game for research cooperation, 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 noncooperating 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 usually assume perfect competition, might be too restrictive.

Suggested Citation

  • Ulrich Kaiser, 2002. "R&D Spillovers and Endogenous Absorptive Capacity," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(2), pages 286-286, June.
  • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200206)158:2_286:rsaeac_2.0.tx_2-p

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    References listed on IDEAS

    1. Amir, Rabah, 2000. "Modelling imperfectly appropriable R&D via spillovers," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 1013-1032, October.
    2. James A. Brander & Barbara J. Spencer, 1983. "Strategic Commitment with R&D: The Symmetric Case," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 225-235, Spring.
    3. Bernard Beaudreau, 1996. "R&D: To Compete or to Cooperate?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(3), pages 173-186.
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    Cited by:

    1. Hammerschmidt, Anna, 2006. "A strategic investment game with endogenous absorptive capacity," Department of Economics Working Paper Series 106, WU Vienna University of Economics and Business.
    2. Anna Hammerschmidt, 2006. "A strategic investment game with endogenous absorptive capacity," Department of Economics Working Papers wuwp092, Vienna University of Economics and Business, Department of Economics.
    3. Samano, Mario & Santugini, Marc & Zaccour, Georges, 2017. "Dynamics in research joint ventures and R&D collaborations," Journal of Economic Dynamics and Control, Elsevier, vol. 77(C), pages 70-92.
    4. Lars Wiethaus, 2006. "Cooperation or competition in R&D when innovation and absorption are costly," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(6), pages 569-589.
    5. Lopez, Alberto, 2008. "Determinants of R&D cooperation: Evidence from Spanish manufacturing firms," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 113-136, January.

    More about this item

    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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