A General Model of R&D Competition and Policy
This article constructs a model of R&D with heterogeneous firms. Each firm's probability of success is a function of its sunk and recurrent R&D expenditures. The social gains from an innovation are not fully captured by the successful firm. The comparison of the social optimum and the market equilibrium involves balancing spillover and crowding effects. Pigovian corrective policies, as well as strategic policies for a subset of colluding firms, are discussed.
Volume (Year): 19 (1988)
Issue (Month): 3 (Autumn)
|Contact details of provider:|| Web page: http://www.rje.org |
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:19:y:1988:i:autumn:p:317-326. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.