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Competition and innovation with horizontal R&D spillovers

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  • Khazabi, Massoud
  • Quyen, Nguyen

Abstract

The paper extends a theoretical framework for analyzing competition and innovation in presence of horizontal spillovers. Introducing two scenarios, it is shown that when firms behave non-cooperatively in both the R&D and production stages the degree of spillover has a negative relationship with the effective and respective R&D expenditures of each firm as well as the level of social welfare. When firms behave cooperatively in the R&D stage, and non-cooperatively in the production stage the relationship between the R&D expenditure of the joint research lab and the number of firms in the market is negative.

Suggested Citation

  • Khazabi, Massoud & Quyen, Nguyen, 2008. "Competition and innovation with horizontal R&D spillovers," MPRA Paper 39453, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39453
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    References listed on IDEAS

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    More about this item

    Keywords

    R&D; Spillovers; Cooperation;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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