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R&D spillovers and information exchange: a case study

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  • Klaus Kultti
  • Tuomas Takalo
  • Tanja Tanayama

Abstract

R&D spillovers can be viewed to arise as a result of a voluntary information exchange between firms. In this paper we extend this theory of R&D spillovers to a context where the spillover effect is on R&D dollars and occurs in a vertical relationship. We show how the exchange of information is more likely to take place in industries with a more extensive product differentiation. Our model predicts that the maximum incentives to exchange information can be found from the vertically related industries. Finally, we present a historical case study on an information-exchange agreement between Micronas and Micro Power Systems so as to support the predictions of the model. Copyright Eurasia Business and Economics Society 2015

Suggested Citation

  • Klaus Kultti & Tuomas Takalo & Tanja Tanayama, 2015. "R&D spillovers and information exchange: a case study," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 63-76, June.
    • Handle: RePEc:spr:eurase:v:5:y:2015:i:1:p:63-76
    DOI: 10.1007/s40822-015-0024-7
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    Cited by:

    1. Sara Amoroso, 2017. "Multilevel heterogeneity of R&D cooperation and innovation determinants," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 93-120, April.

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    More about this item

    Keywords

    R&D; Spillovers; Information exchange; Product differentiation; O31; O32; O34; L15; L63;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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