Process and product R&D by a multiproduct monopolist: a reply to Lin
With reference to Lambertini (2003), Lin correctly points out that, if R&D efforts for process innovation are endogenous, then process and product R&D are strategic complements. Then, he also proves that the opposite holds when spillovers are nil. Objecting to Lin's second claim, I show that monopoly profits are everywhere increasing in the extent of information sharing within the firm. Consequently, the full internalisation of spillovers restores the complementarity between process R&D and product proliferation. Copyright 2004, Oxford University Press.
Year of publication: |
2004
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Authors: | Lambertini, Luca |
Published in: |
Oxford Economic Papers. - Oxford University Press. - Vol. 56.2004, 4, p. 745-749
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Publisher: |
Oxford University Press |
Saved in:
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