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Cooperation versus competition in product innovation

  • Miguel Gonzalez-Maestre
  • Diego Penarrubia

This paper analyzes the optimal antitrust policy in the context of a patent race. In a simplified model, we identify the conditions under which allowing cooperation yields greater welfare than imposing competition. In view of our results, we discuss, critically, the current European policy towards R&D cooperation.

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Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 14 (2005)
Issue (Month): 4 ()
Pages: 305-318

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Handle: RePEc:taf:ecinnt:v:14:y:2005:i:4:p:305-318
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  1. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
  2. Glenn C. Loury, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, Oxford University Press, vol. 93(3), pages 395-410.
  3. N. Gregory Mankiw & Michael D. Whinston, 1986. "Free Entry and Social Inefficiency," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 48-58, Spring.
  4. Jeffrey Bernstein & Ishaq Nadiri, 1988. "Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries," Carleton Industrial Organization Research Unit (CIORU) 88-01, Carleton University, Department of Economics.
  5. Battaggion, Maria R & Garella, Paolo G, 2001. "Joint Venture for a New Product and Antitrust Exemptions," Australian Economic Papers, Wiley Blackwell, vol. 40(3), pages 247-62, September.
  6. Fujita, Masahisa & Thisse, Jacques-François, 2002. "Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Looses From It?," CEPR Discussion Papers 3135, C.E.P.R. Discussion Papers.
  7. Bresnahan, Timothy F & Greenstein, Shane, 1999. "Technological Competition and the Structure of the Computer Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 47(1), pages 1-40, March.
  8. Bernstein, Jeffrey I, 1989. "The Structure of Canadian Inter-industry R&D Spillovers, and the Rates of Return to R&D," Journal of Industrial Economics, Wiley Blackwell, vol. 37(3), pages 315-28, March.
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