Slivko, Olga; Theilen, Bernd - In: Journal of Economics 112 (2014) 3, pp. 253-282
In this paper a firm’s R&D strategy is assumed to be endogenous and allowed to depend on both internal firm characteristics and external factors. Firms choose between two strategies, either they engage in R&D or abstain from own R&D and imitate the outcomes of innovators. This yields three...