Cooperative R&D with Endogenous Technology Differentiation

We study a nontournament R&D duopoly. Before the standard R&D investment and quantity-setting stages, we consider a stage in which firms choose their R&D technologies. Spillovers negatively depend on R&D technology differentiation. We show that, in equilibrium, firms will choose identical or very similar R&D processes. Such equilibria may entail less differentiation than would be dictated by social welfare maximization. Copyright Blackwell Publishing 2005.

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Year of publication:	2005
Authors:	Moltó, María José Gil ; Georgantzís, Nikolaos ; Orts, Vicente
Published in:	Journal of Economics & Management Strategy. - Wiley Blackwell. - Vol. 14.2005, 2, p. 461-476
Publisher:	Wiley Blackwell

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005315535