Does society prefer small innovation?
In this paper we show how the size of innovation can affect the incentive for cooperative R&D and social welfare. When cost difference between large and small innovations is not sufficiently large then social welfare can be more under small innovation compared to large innovation. However, the innovating firm always prefers large innovation.
|Date of creation:||Nov 2001|
|Publication status:||Published in Economics Letters, Vol. 78, Issue 3, March 2003 pages 301-07. [ doi:10.1016/S0165-1765(02)00265-3 ]|
|Contact details of provider:|| Postal: Department of Economics, University of Keele, Keele, Staffordshire, ST5 5BG - United Kingdom|
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|Order Information:|| Postal: Department of Economics, Keele University, Keele, Staffordshire ST5 5BG - United Kingdom|
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