Innovation and cooperation with horizontal spillovers
The paper proposes a theory of innovation and market structure. The model incorporates n firms with horizontal spillovers all interacting within a hypothetical industry. In a two-stage sequential game framework, four types of cooperation are studied: full non-cooperation; cooperation in both stages; cooperation only in the R&D stage; and simultaneous cooperation and non-cooperation in the R&D stage. It is shown that the effect of competition on total innovation investment varies among all four cases and mostly depends on the level of spillover effects as well as the level of coordination among competing firms.
|Date of creation:||01 Dec 2004|
|Publication status:||Published in The IUP Journal of Industrial Economics No. 4.Vol. 4(2007): pp. 33-46|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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References listed on IDEAS
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- Boone, J., 2000.
"Competitive pressure : The effects on investments in product and process innovation,"
Other publications TiSEM
88418185-7603-4c36-92fd-3, Tilburg University, School of Economics and Management.
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Oxford University Press, vol. 18(1), pages 63-79, Spring.
- David Encaoua & Abraham Hollander, 2002. "Competition Policy and Innovation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00185360, HAL.
- Suetens, Sigrid, 2005. "Cooperative and noncooperative R&D in experimental duopoly markets," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 63-82, February.
- Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002.
"Competition and innovation: an inverted U relationship,"
IFS Working Papers
W02/04, Institute for Fiscal Studies.
- Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
- Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and Innovation: An Inverted U Relationship," NBER Working Papers 9269, National Bureau of Economic Research, Inc.
- Howitt, Peter & Griffith, Rachel & Aghion, Philippe & Blundell, Richard & Bloom, Nick, 2005. "Competition and Innovation: An Inverted-U Relationship," Scholarly Articles 4481507, Harvard University Department of Economics.
- MacDonald, James M, 1994. "Does Import Competition Force Efficient Production?," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 721-727, November.
- Kamien,Morton I. & Schwartz,Nancy L., 1982. "Market Structure and Innovation," Cambridge Books, Cambridge University Press, number 9780521293853.
- Richard Blundell & Rachel Griffith & John van Reenen, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Oxford University Press, vol. 66(3), pages 529-554.
- repec:hal:journl:halshs-00185360 is not listed on IDEAS
- repec:esx:essedp:530 is not listed on IDEAS
- Aoki, Reiko, 1991. "R&D Competition for Product Innovation: An Endless Race," American Economic Review, American Economic Association, vol. 81(2), pages 252-256, May.
- Weinberg, John A, 1992. "Exclusionary Practices and Technological Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 135-146, June.
- Boone, Jan, 2001. "Intensity of competition and the incentive to innovate," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 705-726, April.
- Dubey, Pradeep & Wu, Chien-wei, 2002. "When less competition induces more product innovation," Economics Letters, Elsevier, vol. 74(3), pages 309-312, February.
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