Khazabi, Massoud and Quyen, Nguyen (2011): R&D Spillovers, Innovation, and Entry.
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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|
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