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Open Innovation in a Dynamic Cournot Duopoly

  • I. Hasnas
  • L. Lambertini
  • A. Palestini

We analyze an Open Innovation process in a Cournot duopoly using a differential game approach where knowledge spillovers are endogenously determined via the R&D process. The game produces multiple steady states, allowing for an asymmetric solution where a firm may trade off the R&D investment against information absorption from the rival.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number wp753.

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Date of creation: May 2011
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Handle: RePEc:bol:bodewp:wp753
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  1. Boris Lokshin & René Belderbos & Martin Carree, 2008. "The Productivity Effects of Internal and External R&D: Evidence from a Dynamic Panel Data Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(3), pages 399-413, 06.
  2. Dirk Czarnitzki & Kornelius Kraft, 2012. "Spillovers of innovation activities and their profitability," Oxford Economic Papers, Oxford University Press, vol. 64(2), pages 302-322, April.
  3. Cellini, Roberto & Lambertini, Luca, 2002. "A differential game approach to investment in product differentiation," Journal of Economic Dynamics and Control, Elsevier, vol. 27(1), pages 51-62, November.
  4. R. Cellini & L. Lambertini, 2003. "Dynamic R&D with Spillovers: Competition vs Cooperation," Working Papers 495, Dipartimento Scienze Economiche, Universita' di Bologna.
  5. Dahlander, Linus & Gann, David M., 2010. "How open is innovation?," Research Policy, Elsevier, vol. 39(6), pages 699-709, July.
  6. Scotchmer, Suzanne, 2010. "Openness, Open Source, and the Veil of Ignorance," Competition Policy Center, Working Paper Series qt4d9052w7, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
  7. Llanes, Gastón & de Elejalde, Ramiro, 2013. "Industry equilibrium with open-source and proprietary firms," International Journal of Industrial Organization, Elsevier, vol. 31(1), pages 36-49.
  8. Li, Changying & Ji, Xiaoming, 2010. "Innovation, licensing, and price vs. quantity competition," Economic Modelling, Elsevier, vol. 27(3), pages 746-754, May.
  9. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  10. Audretsch, D-B & Menkveld, A-J & Thurik, A-R, 1996. "The Decision Between Internal and External R&D," Papers 9603/e, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
  11. Drechsler, Wenzel & Natter, Martin, 2012. "Understanding a firm's openness decisions in innovation," Journal of Business Research, Elsevier, vol. 65(3), pages 438-445.
  12. Caulkins, Jonathan P. & Feichtinger, Gustav & Grass, Dieter & Hartl, Richard F. & Kort, Peter M. & Seidl, Andrea, 2013. "When to make proprietary software open source," Journal of Economic Dynamics and Control, Elsevier, vol. 37(6), pages 1182-1194.
  13. Adam B. Jaffe, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits and Market Value," NBER Working Papers 1815, National Bureau of Economic Research, Inc.
  14. Piercarlo Zanchettin, 2006. "Differentiated Duopoly with Asymmetric Costs," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(4), pages 999-1015, December.
  15. Fu, Xiaolan, 2012. "How does openness affect the importance of incentives for innovation?," Research Policy, Elsevier, vol. 41(3), pages 512-523.
  16. A. Spithoven & B. Clarysse & M. Knockaert, 2009. "Building Absorptive Capacity to Organise Inbound Open Innovation in Low Tech Industries," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/606, Ghent University, Faculty of Economics and Business Administration.
  17. Modica Salvatore, 2012. "Open Source without Free-Riding," Economia politica, Società editrice il Mulino, issue 2, pages 247-260.
  18. Cellini, Roberto & Lambertini, Luca, 1998. "A Dynamic Model of Differentiated Oligopoly with Capital Accumulation," Journal of Economic Theory, Elsevier, vol. 83(1), pages 145-155, November.
  19. R. Cellini & L. Lambertini, 2004. "R&D Incentives and Market Structure: A Dynamic Analysis," Working Papers 497, Dipartimento Scienze Economiche, Universita' di Bologna.
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