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Strategic R&D policy under vertically differentiated oligopoly

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  • Jee-Hyeong Park

Abstract

In this paper strategic R&D policy is analysed, where a firm and a firm compete in a third country with vertically differentiated ( and ) products. If the product market is under price competition, the high-tech (low-tech) firm's government has an incentive to tax (subsidize) its domestic firm's activities. If the product market is under quantity competition, the results are opposite: an R&D subsidy (tax) incentive for the high-tech (low-tech) firm's government; and the high-tech firm's government in the R&D policy game, in contrast to the standard prisoner's dilemma result of the R&D policy literature.

Suggested Citation

  • Jee-Hyeong Park, 2001. "Strategic R&D policy under vertically differentiated oligopoly," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 967-987, November.
    • Handle: RePEc:cje:issued:v:34:y:2001:i:4:p:967-987
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    Citations

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    Cited by:

    1. Ghosh, Arghya & Saha, Souresh, 2015. "Price competition, technology licensing and strategic trade policy," Economic Modelling, Elsevier, vol. 46(C), pages 91-99.
    2. Choi, Yoonho & Kwan Choi, E., 2018. "Quality competition in north-south trade," International Journal of Production Economics, Elsevier, vol. 201(C), pages 216-224.
    3. Tsuyoshi Toshimitsu & Naoto Jinji, 2008. "A Note on Strategic Trade Policy and Endogenous Quality Choice," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 173-185, February.
    4. Kranich, Jan, 2009. "Agglomeration, innovation and international research mobility," Economic Modelling, Elsevier, vol. 26(5), pages 817-830, September.
    5. Jan Haaland & Hans Jarle Kind, 2006. "Cooperative and Non-Cooperative R&D Policy in an Economic Union," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(4), pages 720-745, December.
    6. Yasunori Ishii, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 571-584, August.
    7. Yasunori Ishii, 2017. "International asymmetric R&D rivalry and industrial strategy," Journal of Economics, Springer, vol. 122(3), pages 267-278, November.
    8. Tsuyoshi Toshimitsu, 2014. "Strategic Product R&D Investment Policy under International Rivalry in the Presence of Demand Spillover Effects," International Economic Journal, Taylor & Francis Journals, vol. 28(2), pages 293-309, June.
    9. Yumiko Taba & Yasunori Ishii, 2016. "Product R&D Investment Policies in an International Duopoly," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 574-582, May.
    10. Jan Kranich, 2008. "R&D and the agglomeration of industries," Working Paper Series in Economics 83, University of Lüneburg, Institute of Economics.
    11. Naoto Jinji, 2003. "Strategic policy for product R&D with symmetric costs," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(4), pages 993-1006, November.
    12. Park, Jee-Hyeong & Spurr, Stephen J. & Chang, Sheng-Kai, 2009. "A Model of Hierarchical Professionals: Cooperation and Conflict between Anesthesiologists and CRNAs," CEI Working Paper Series 2009-13, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    13. Jinji, Naoto & Toshimitsu, Tsuyoshi, 2013. "Strategic R&D policy in a quality-differentiated industry with three exporting countries," Japan and the World Economy, Elsevier, vol. 28(C), pages 132-142.
    14. Mantian Xue, 2022. "“Spare Wheel” R&D in vertically related markets," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(4), pages 1105-1112, June.
    15. Julien Berthoumieu & Viola Lamani, 2016. "Vertical Differentiation, Uncertainty, Product R&D and Policy Instruments in a North-South Duopoly," Working Papers hal-01285559, HAL.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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