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One-Way Spillovers, Endogenous Innovator/Imitator Roles and Research Joint Ventures

Author

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  • Amir, Rabah

    (Wissenschaftszentrum Berlin)

  • Wooders, John

    (Department of Economics, University of Arizona)

Abstract

We consider a two-period duopoly characterized by a one-way spillover structure in process R&D and a very broad specification of product market competition. We show that a priori identical firms always engage in different levels of R&D, at equilibrium, thus giving rise to an innovator/imitator configuration and ending up with different sizes. In view of this endogenous firm heterogeneity, the social benefits of, and the firms' incentives for, research joint ventures are somewhat different from the case of ex post firm symmetry. The key properties of the game are submodularity (R&D decisions are strategic substitutes) and lack of global concavity.

Suggested Citation

  • Amir, Rabah & Wooders, John, 1997. "One-Way Spillovers, Endogenous Innovator/Imitator Roles and Research Joint Ventures," Economics Series 43, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihsesp:43
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    File URL: https://irihs.ihs.ac.at/id/eprint/983
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    More about this item

    Keywords

    Oligopolistic R&D; One-Way Spillovers; Research Joint Ventures; Submodularity;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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