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R&D Cooperation with Entry

Author Info

Listed author(s):
  • Siddhartha Bandyopadhyay
  • Arijit Mukherjee

Abstract

We show the effects of entry by a non-innovating firm on the innovating firms' incentive for undertaking cooperative R&D, highlighting the impliations of knowledge spillover. Entry by a non-innovating firm may either increase or decrease the incentive for cooperative R&D comparted to no entry, depending on the innovating and the non-innovating firms' gains from knowledge spillover. The entry deterrence motive, which has so far been ignored in the literature, plays an important role in determing R&D organisation in our analysis.

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File URL: ftp://ftp.bham.ac.uk/pub/RePEc/pdf/11-07.pdf
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Paper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 11-07.

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Length: 20 pages
Date of creation: Feb 2011
Handle: RePEc:bir:birmec:11-07
Contact details of provider: Postal:
Edgbaston, Birmingham, B15 2TT

Web page: http://www.economics.bham.ac.uk

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Keywords: Co-oerative R&D; Entry; Knowlege spillover;

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Find related papers by JEL classification:
  • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
  • L4 - Industrial Organization - - Antitrust Issues and Policies
  • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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  1. Poyago-Theotoky, Joanna, 1995. "Equilibrium and Optimal Size of a Research Joint Venture in an Oligopoly with Spillovers," Journal of Industrial Economics, Wiley Blackwell, vol. 43(2), pages 209-226, June.
  2. Marjit, Sugata, 1991. "Incentives for cooperative and non-cooperative R and D in duopoly," Economics Letters, Elsevier, vol. 37(2), pages 187-191, October.
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Cited by:

  1. Deming Zeng & Luyun Xu & Xia-an Bi, 2017. "Effects of asymmetric knowledge spillovers on the stability of horizontal and vertical R&D cooperation," Computational and Mathematical Organization Theory, Springer, vol. 23(1), pages 32-60, March.

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