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Absorption des connaissances et localisation internationale de la R&D des entreprises. Un jeu stratégique

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Listed:
  • Bernard Franck
  • Robert Frank Owen

Abstract

Effective levels of firms? R&D are understood here to depend, at an international scale, on where they are located due to country-specific spillovers of fundamental R&D. A duopoly model is proposed in which each firm is initially located in a different country. Since knowledge is assumed to be complementary between the two countries, there is an incentive for each firm to set up R&D activities abroad, in order to capture additional R&D spillovers. A game-theoretic framework highlights outcomes, wherein both firms will localize R&D activities abroad, but it is collectively unprofitable for them to do so. It is shown that non-cooperative intervention by the two countries, in the form of lump-sum taxes on foreign entry, may eliminate such a Prisoners? Dilemma. Classification JEL : F15, F23, O3.

Suggested Citation

  • Bernard Franck & Robert Frank Owen, 2005. "Absorption des connaissances et localisation internationale de la R&D des entreprises. Un jeu stratégique," Revue économique, Presses de Sciences-Po, vol. 56(6), pages 1207-1226.
    • Handle: RePEc:cai:recosp:reco_566_1207
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    Cited by:

    1. Eduardo Rossi, 2010. "Univariate GARCH models: a survey (in Russian)," Quantile, Quantile, issue 8, pages 1-67, July.

    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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