R&D Cooperation and R&D Intensity: Theory and Micro–Econometric Evidence for German Manufacturing Industries

Kaiser, Ulrich ; Licht, Georg

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URL: http://ub-madoc.bib.uni-mannheim.de/660
URN: urn:nbn:de:bsz:180-madoc-6604
Document Type: Working paper
Year of publication: 1998
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C25 O31 L13 C24 ,
Subject headings (SWD): Forschung und Entwicklung , Forschungskooperation , Spill-over-Effekt , Innovation
Abstract: This paper develops a three stage oligopoly game for R&D cooperation, R&D expenditure and product market competition. In the first stage, firms decide whether or not to conduct R&D in cooperation with other firms. In the second stage the level of R&D investment is determined. Finally, firms compete in a Cournot–oligopoly product market. While earlier models on R&D cooperation only considered process innovation, the model presented here also takes product innovation into account. It is shown that the optimal R&D investment has virtually the same structure for both process and product innovation. The main hypothesis of our theoretical model are tested in the empirical part of this paper.
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