This paper considers a nontournament duopoly model of process innovation. Costs of production can be reduced by firms spending on R&D. Firms are asymmetric in the sense that they may differ in their initial costs of production . It is shown that the high-cost firm may spend more (or less) in R&D...

The recent rise in university--industry partnerships has stimulated an important public-policy debate regarding how these relationships affect fundamental research. In this paper, we examine the antecedents and consequences of policies to promote university--industry alliances. Although the...

We present a model of spatial price discrimination where R&D spillovers are endogenous as they depend on firms' location. We establish that both the distance between locations and R&D efforts are an increasing function of the transportation cost coefficient and show that there is a continuum of...

We examine the role that product differentiation can play in the design of environmental policy under full commitment and no commitment on the part of the environmental regulator. We consider a setting with two firms selling a differentiated product which generates pollution through emissions....

We study fi…rms' preferences towards intellectual property rights (IPR) regimes in a North-South context, using a simple duopoly model where a 'North' and a 'South' firm compete in a third market. Unlike other contributions in this fi…eld, we explicitly introduce the South's capability to...

We introduce pollution, as a by-product of production, into a non-tournament model of R&D with spillovers. Technology policy takes the form of either R&D subsidisation or pre-competitive R&D cooperation. We show that, when the emissions tax is exogenous, the optimal R&D subsidy can be negative,...

This paper analyzes a simple oligopoly model with information spillovers. Firms spend on R&D to affect their costs of production. The main finding is that, depending on the magnitude of the spillover, the market may not provide enough incentives for the optimum degree of cooperation to take...