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Endogenous specialization of heterogeneous innovative activities of firms under the technological spillovers

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  • Bondarev, Anton

Abstract

This paper proposes a reduced form model of dynamic duopoly in the context of heterogeneous innovations framework. Two agents invest into expansion of variety of available products and into the improvement of quality of existing products simultaneously. Every newly introduced product has its own dimension of quality-improving innovations and there is a continuum of possible new products. In the area of quality innovations the costless imitation effect is modelled while in the area of variety expanding innovations agents are cooperating with each other. As a result the specialization of innovative activity is observed. This specialization arises from strategic interactions of agents in both fields of innovative activity and is endogenously defined from the dynamics of the model.

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  • Bondarev, Anton, 2014. "Endogenous specialization of heterogeneous innovative activities of firms under the technological spillovers," Journal of Economic Dynamics and Control, Elsevier, vol. 38(C), pages 235-249.
    • Handle: RePEc:eee:dyncon:v:38:y:2014:i:c:p:235-249
    DOI: 10.1016/j.jedc.2013.10.002
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    Cited by:

    1. Bondarev, Anton & Greiner, Alfred, 2018. "Catching-up and falling behind: Effects of learning in an R&D differential game with spillovers," Journal of Economic Dynamics and Control, Elsevier, vol. 91(C), pages 134-156.
    2. Bondarev, Anton, 2018. "Robust policy schemes for R&D games with asymmetric information," Working papers 2018/01, Faculty of Business and Economics - University of Basel.
    3. Anton Bondarev, 2016. "Intensity of R&D competition and the generation of innovations in heterogeneous setting," Journal of Evolutionary Economics, Springer, vol. 26(3), pages 621-653, July.
    4. Bondarev, Anton & Greiner, Alfred, 2019. "Endogenous Growth And Structural Change Through Vertical And Horizontal Innovations," Macroeconomic Dynamics, Cambridge University Press, vol. 23(1), pages 52-79, January.
    5. Bondarev, Anton, 2018. "Does stronger intellectual property rights protection foster structural change? Effects of heterogeneity in innovations," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 26-42.
    6. Anton Bondarev, 2019. "Robust Policy Schemes for Differential R&D Games with Asymmetric Information," Dynamic Games and Applications, Springer, vol. 9(2), pages 391-415, June.
    7. Anton Bondarev, 2021. "Games Without Winners: Catching-up with Asymmetric Spillovers," Dynamic Games and Applications, Springer, vol. 11(4), pages 670-703, December.
    8. Bondarev, Anton & Krysiak, Frank C., 2017. "Temporary and permanent technology lock-ins in the quality-differentiated Bertrand competition," Working papers 2017/09, Faculty of Business and Economics - University of Basel.
    9. Anton Bondarev & Frank C. Krysiak, 2017. "Robust policy schemes for R&D games with asymmetric information," Working papers 2017/14, Faculty of Business and Economics - University of Basel.

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    More about this item

    Keywords

    Innovations; Dynamics; Multiproduct; Technology spillovers; Distributed control; Differential games;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • L0 - Industrial Organization - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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