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The relationship between R&D spillovers and regional innovation: Licensing patents through royalties and the Stackelberg duopoly with subgame perfect Nash equilibrium

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  • Vasilios Kanellopoulos

Abstract

The present paper examines the effect of R&D spillovers on regional innovation in Greece over the 2002-2010 period. The approach taken goes beyond a regional knowledge production function and draws possible explanations from a more extensive pool of R&D related and regional structural variables. Having employed game theory techniques in order to describe the licensing of the patents through royalties and derived the subgame perfect Nash equilibrium under a Stackelberg duopoly, the results obtained accord with findings of previous studies when it comes R&D expenditure related variables and further suggest that the role of highly-qualified employment is instrumental in promoting regional innovation. The results also suggest the benefits of synergies between R&D personnel in manufacturing and other measures of highly-qualified employment as well as R&D expenditure of the public sector and employment in manufacturing business R&D for regional innovation.

Suggested Citation

  • Vasilios Kanellopoulos, 2026. "The relationship between R&D spillovers and regional innovation: Licensing patents through royalties and the Stackelberg duopoly with subgame perfect Nash equilibrium," Papers 2602.02274, arXiv.org.
    • Handle: RePEc:arx:papers:2602.02274
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    File URL: http://arxiv.org/pdf/2602.02274
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