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Endogenous specialization of heterogeneous innovative activities of firms under technological spillovers

  • Bondarev, Anton A.

This paper proposes a reduced form model of dynamic duopoly in the context of heterogeneous innovations framework. Two agents invest into product and process innovations simultaneously. Every newly introduced product has its own dimension of process-improving innovations and there is a continuum of possible new products. In the area of process innovations the costless imitation effect is modelled while in the area of product innovations agents are cooperating with each other. As a result the specialization of innovative activity is observed. This specialization arises from strategic interactions of agents in both fields of innovative activity and is endogenously defined from the dynamics of the model.

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File URL: http://mpra.ub.uni-muenchen.de/35424/1/MPRA_paper_35424.pdf
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File URL: http://mpra.ub.uni-muenchen.de/45265/8/MPRA_paper_45265.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35424.

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Date of creation: 15 Dec 2011
Date of revision: 15 Dec 2011
Handle: RePEc:pra:mprapa:35424
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  1. Glenn C. Loury, 1976. "Market Structure and Innovation," Discussion Papers 256, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  2. repec:cup:cbooks:9780521637329 is not listed on IDEAS
  3. Anton Bondarev, 2012. "The long-run dynamics of product and process innovations for a multi-product monopolist," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(8), pages 775-799, November.
  4. Kenneth L. Judd, 1985. "Closed-Loop Equilibrium in a Multi-Stage Innovation Race," Discussion Papers 647, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  5. Nancy T. Gallini, 1992. "Patent Policy and Costly Imitation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 52-63, Spring.
  6. Herbert Dawid & Alfred Greiner & Benteng Zou, 2008. "Optimal Foreign Investment Dynamics in the Presence of Technological Spillovers," CREA Discussion Paper Series 08-07, Center for Research in Economic Analysis, University of Luxembourg.
  7. Anton Bondarev, 2010. "Product and Quality Innovations: An Optimal Control Approach," Working Papers 439, Bielefeld University, Center for Mathematical Economics.
  8. Luca Lambertini & Andrea Mantovani, 2010. "Process and product innovation: A differential game approach to product life cycle," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(2), pages 227-252.
  9. Partha Dasgupta & Joseph Stiglitz, 1980. "Industrial Structure and the Nature of Innovative Activity (Now published in Economic Journal, Vol.90 (June 1980)pp.226-293.)," STICERD - Theoretical Economics Paper Series /1980/04, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  10. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-93, June.
  11. Reinganum, Jennifer F, 1982. "A Dynamic Game of R and D: Patent Protection and Competitive Behavior," Econometrica, Econometric Society, vol. 50(3), pages 671-88, May.
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