Gersbach, Hans; Schmutzler, Armin - In: Economic Theory 21 (2003) 1, pp. 59-79
We present a new approach to endogenizing technological spillovers. Firms choose levels of a cost-reducing innovation from a continuum before they engage in competition for each other's R&D-employees. Successful bids for the competitor's employee then result in higher levels of cost reduction....