This paper deals with an oligopolistic industry where firms are engaged in cost-reducing R&D activity to maximize their market shares. The existence and uniqueness of a feedback-Nash-optimal R&D strategy for each firm are discussed. Our simulations highlight that variations in spillovers hardly influence the firms' R&D investment, if their absorptive capacities to exploit extramural knowledge depend on their R&D efforts. Moreover, extramural knowledge cannot completely replace in-house R&D. However, a high level of public R&D favors the firm with the most restrictive R&D expenditure constraint and/or with the lowest initial R&D stock, provided it invests in R&D.

Campisi, D., Mancuso, P., Nastasi, A. (2001). R&D Competition, Absorptive Capacity, and Market Shares. JOURNAL OF ECONOMICS, 73(1), 57-80.

R&D Competition, Absorptive Capacity, and Market Shares

CAMPISI, DOMENICO;MANCUSO, PAOLO;
2001

Abstract

This paper deals with an oligopolistic industry where firms are engaged in cost-reducing R&D activity to maximize their market shares. The existence and uniqueness of a feedback-Nash-optimal R&D strategy for each firm are discussed. Our simulations highlight that variations in spillovers hardly influence the firms' R&D investment, if their absorptive capacities to exploit extramural knowledge depend on their R&D efforts. Moreover, extramural knowledge cannot completely replace in-house R&D. However, a high level of public R&D favors the firm with the most restrictive R&D expenditure constraint and/or with the lowest initial R&D stock, provided it invests in R&D.
Pubblicato
Rilevanza internazionale
Articolo
Esperti anonimi
Settore ING-IND/35 - Ingegneria Economico-Gestionale
English
Cost-reducing R&D; Dynamic noncooperative feedback game; Extra-industry R&D; Stock of technological knowledge; Business, Management and Accounting (all); Economics and Econometrics
Campisi, D., Mancuso, P., Nastasi, A. (2001). R&D Competition, Absorptive Capacity, and Market Shares. JOURNAL OF ECONOMICS, 73(1), 57-80.
Campisi, D; Mancuso, P; Nastasi, A
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/124407
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