In innovative races with winner takes all, leading firms invest less than each follower, given exogenous entry (Reinganum, 1985). But with endogenous entry this result is reversed (Etro, 2004). It is argued here that sharing of rewards between the players may alter these predictions

This paper studies the consequences of parallel import (PI) on process innovation of firms heterogeneous in their production technology. In an international setting where foreign markets differ with respect to their intellectual property rights regime, a move by a technologically inferior firm...

Innovation and marketing strategies adopted by multinational companies in the globalized economy are subject to continuous challenges. Consider EU exporting companies that produce, for example, solar panels. Depending on political elections and the ensuing support for environmental policies (or...

We investigate the timing of adoption of product and process innovation by using a differential game in which firms may invest in both activities. We consider horizontal product innovation that reduces product substitutability, and process innovation that reduces marginal cost. First, we...