A Simple Game-Theoretic Framework for Studying R&D Expenditures and R&D Cooperation

21 Pages Posted: 19 Nov 2002

See all articles by Ulrich Kaiser

Ulrich Kaiser

University of Southern Denmark - Faculty of Social Sciences; Center for Economic and Business Research (CEBR); Centre for European Economic Research

Date Written: May 15, 2001

Abstract

This paper derives a three stage Cournot duopoly game for research collaboration, research expenditures and product market competition. The amount of knowledge firms can absorb is made dependent on their own research efforts, e.g. firms' absorptive capacity is treated as an endogenous variable. It is shown that cooperating firms invest more in R&D than non-cooperating firms if spillovers are su±ciently large. The degree of market competition is a key determinant of the effects of research cooperation on research efforts, implying that existing models which assume perfect competition might be too restrictive.

Keywords: research cooperation, research expenditures, knowledge spillovers

JEL Classification: O31

Suggested Citation

Kaiser, Ulrich, A Simple Game-Theoretic Framework for Studying R&D Expenditures and R&D Cooperation (May 15, 2001). ZEW Discussion Paper No. 01-22. Available at SSRN: https://ssrn.com/abstract=331064 or http://dx.doi.org/10.2139/ssrn.331064

Ulrich Kaiser (Contact Author)

University of Southern Denmark - Faculty of Social Sciences ( email )

Campusvej 55
DK-5230 Odense M
Denmark

HOME PAGE: http://www.sam.sdu.dk/staff/uka

Center for Economic and Business Research (CEBR) ( email )

Porcelaenshaven, Bldg 65
DK-2000 Frederiksberg
Denmark

HOME PAGE: http://www.cebr.dk/uk

Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

HOME PAGE: http://www.zew.de/de/mitarbeiter/mitarbeiter.php3?action=mita&kurz=uka

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