Cooperative R&D with differentiated products in vertically related industries

Parisa Pourkarimi, Gamal Atallah

This paper studies the impact of cooperative R&D on innovation, welfare, and profitability in vertically related industries with differentiated products. The model incorporates two vertically related industries, with horizontal spillovers within industries and vertical spillovers between them. Upstream firms produce a homogeneous intermediate good, while downstream firms provide differentiated products. Three types of R&D cooperation are studied: no cooperation, horizontal cooperation, and vertical cooperation. The comparison of cooperation settings in terms of R&D and profitability shows that although vertical cooperation yields higher innovation and welfare, it may lead to overinvestment in R&D.

MoreLess

Year of publication:	2020
Authors:	Pourkarimi, Parisa ; Atallah, Gamal
Subject:	vertical spillovers \| horizontalspillovers \| product differentiation \| R&D cooperation \| Produktdifferenzierung \| Product differentiation \| Vertikale Integration \| Vertical integration \| Spillover-Effekt \| Spillover effect \| Theorie \| Theory \| Industrieforschung \| Industrial research \| Forschungskooperation \| Research collaboration \| Duopol \| Duopoly

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.51558/2303-680X.2020.18.2.3 [DOI] hdl:10419/307825 [Handle]
Classification:	L13 - Oligopoly and Other Imperfect Markets ; O32 - Management of Technological Innovation and R&D
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014466428