Petsas, Iordanis; Giannikos, Christos - In: International Journal of Business and Economics 4 (2005) 3, pp. 231-248
This paper develops a differentiated-goods duopoly model in which firms engage in Cournot-Nash quantity competition. The effects of firm size on the choice of R&D effort between process and product innovation are examined. We find that (a) as firms devote more effort to product innovation, given...