Khazabi, Massoud and Quyen, Nguyen (2011): R&D Spillovers, Innovation, and Entry.
Download (246Kb) | Preview
The paper extends a theoratical framework to analyze the impact of R&D spillovers on entry and the resulting equilibrium market structure. It is shown that the degree of spillovers plays a fundamental role on the number of firms entering the market, their R&D activities, and social welfare. The analysis suggests that social welfare is maximized at some intermediate degree of spillovers. The policy implication of this result is that neither complete protection of intellectual property right nor lax enforcement of patent laws is socially optimal.
|Item Type:||MPRA Paper|
|Original Title:||R&D Spillovers, Innovation, and Entry|
|Keywords:||R&D, Entry, Spillovers|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure|
|Depositing User:||Massoud Khazabi|
|Date Deposited:||15. Jun 2012 12:54|
|Last Modified:||12. Feb 2013 16:06|
Amir, R.; I. Evstigneev, and J. Wooders (2003), “Non-cooperative versus Cooperative R&D with Endogenous Spillover Rate,” Games and Economics Behaviour, 42, 183-207.
Atallah, G. (2000), "Vertical R&D Spillovers, Cooperation, Market Structure, and Innovation," CIRANO Working Papers 2000s-54, CIRANO.
Atallah, G. (2007), “Entry Deterrence through Fixed Cost Reducing R&D,” Rivista di Politica Economica, 49-77.
Cassiman, B. and R. Veugelers (2002), “Complementarity in the Innovation Strategy: Internal R&D, External Technology Acquisition, and Cooperation in R&D,” IESE Business School Working Paper No. 457.
Dasgupta, P. and J. Stiglitz (1980), “Industrial Structure and the Nature of Innovative Activity,” The Economic Journal, 90, 266-293.
D’Aspremont, C. and A. Jacquemin (1988), “Cooperative and Non-cooperative R&D in Duopoly with Spillovers,” The American Economics Review, 78(5), 1133-37.
De Bondt, R. (1996), “Spillovers and Innovative Activities,” International Journal of Industrial Organization, 15(1), 1-28.
De Bondt, R., P. Slaets, and B. Cassiman (1992), “The Degree of Spillovers and the Number of Rivals for Maximum Effective R&D,” International Journal of Industrial Organization, 10, 35-54.
Erkal, N. and D. Piccinin (2010), “Cooperative R&D under Uncertainty with Free Entry,” International Journal of Industrial Organization, 28, 74-85.
Kamien, M. I.; E. Muller, and I. Zang (1992), “Research Joint Ventures and R&D Cartels,” American Economic Review, 82(5), 1293-306.
Kamien, M. I. and I. Zang (1993), “Competing Research Joint Ventures,” Journal of Economics and Management Strategy, 2(1), 23-40.
Poyago-Theotoky, Joanna (1995), “Equilibrium and Optimal Size of a Research Joint Venture in an Oligopoly with Spillovers,” Journal of Industrial Economics, Volume XLIII, 209-226.
Ruff, L. E. (1969), “Research and Technological Progress in a Cournot Economy,” Journal of Economic Theory, 1(4), 397-415.
Spence, M. (1984), “Cost reduction, Competition and Industry Performance,” Econometrica, 52(1), 101–21.
Suetens, S. (2005), “Cooperative and Non-cooperative R&D in Experimental Duopoly Markets,” International Journal of Industrial Organization, 23, 63-82.
Suzumura, Kotaro (1992), “Cooperative and Non-cooperative R&D in an Oligopoly with Spillovers,” American Economic Review, 82, 1307-1320.
Sveikauska, L. (2007), “R&D and Productivity Growth: A Review of the Literature,” US Bureau of Labour Statistics, Working Paper 408.
Vives, X. (2008), “Innovation and Competitive Pressure,” The Journal of Industrial Economics, 56(3), 419-469.
Yi, S. S. (1996), “The Welfare Effects of Cooperative R&D in Oligopoly with Spillovers,” Review of Industrial Organization, 11, 681-698.