Munich Personal RePEc Archive

R&D Spillovers, Innovation, and Entry

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

[img]
Preview
PDF
MPRA_paper_39460.pdf

Download (252kB) | Preview

Abstract

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.