R and D Competition and Endogenous Spillovers

Jim Yongtao Jin; M Troege

doi:10.1111/j.1467-9957.2006.00481.x

R and D Competition and Endogenous Spillovers

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Abstract

The paper examines firms' choices between innovation and imitation in duopoly. We show that in the unique equilibrium asymmetric firms choose the same level of expenditure on imitation and the same ratio of innovative cost reduction to output. We evaluate the marginal contribution of innovation and imitation expenditure by small and large firms to consumer surplus and welfare, and discuss the desirability of differentiated R&D subsidies on innovation and imitation in terms of R&D tax rebates.

Original language	English
Pages (from-to)	40-51
Number of pages	12
Journal	Manchester School
Volume	74
Issue number	1
DOIs	https://doi.org/10.1111/j.1467-9957.2006.00481.x
Publication status	Published - Jan 2006

Keywords

RESEARCH JOINT VENTURES
ONE-WAY SPILLOVERS
IMITATION
INNOVATION
TECHNOLOGY
INDUSTRY
DUOPOLY
GROWTH

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KW - ONE-WAY SPILLOVERS

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KW - INNOVATION

KW - TECHNOLOGY

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KW - DUOPOLY

KW - GROWTH

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R and D Competition and Endogenous Spillovers

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Keywords

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