Strategic R&D with Knowledge Spillovers and Endogenous Time to Complete

It is shown that asymmetry in R&D efficiency between firms is an important factor determining feasibility of the preemption and attrition scenarios in competitive R&D with time to build. Scenarios of attrition and preemption games are most likely to occur when competitors have similar R&D efficiencies. In case of largely asymmetric firms the games of attrition and preemption are very unlikely, thus the R&D duration choices of firms are determined by the actual trade-off between the benefits of earlier innovation and the costs of faster R&D project completion.

[1]  Carlos Alós-Ferrer,et al.  On the Evolution of Market Institutions: The Platform Design Paradox , 2006 .

[2]  Federico Revelli,et al.  FDI determination and corporate tax competition in a volatile world , 2007 .

[3]  Bas Jacobs,et al.  Real Options and Human Capital Investment , 2007, SSRN Electronic Journal.

[4]  Horst Rottmann,et al.  Effects of Innovation on Employment: A Dynamic Panel Analysis , 2007, SSRN Electronic Journal.

[5]  F. Scherer.  Research and Development Resource Allocation Under Rivalry , 1967 .

[6]  M. Moretto,et al.  Preemption, Start-Up Decisions and the Firms' Capital Structure , 2007, SSRN Electronic Journal.

[7]  Rainald Borck,et al.  Commuting Subsidies With Two Transport Modes , 2007, SSRN Electronic Journal.

[8]  Measuring Productivity Dynamics with Endogenous Choice of Technology and Capacity Utilization: An Application to Automobile Assembly , 2000 .

[9]  Christian Gollier,et al.  Intergenerational Risk-Sharing and Risk-Taking of a Pension Fund , 2007, SSRN Electronic Journal.

[10]  F. Schneider,et al.  Monetary Commitment, Institutional Constraints and Inflation: Empirical Evidence for OECD Countries Since the 1970s , 2007, SSRN Electronic Journal.

[11]  Rüdiger Pethig,et al.  Pricing the Ecosystem and Taxing Ecosystem Services: A General Equilibrium Approach , 2007, J. Econ. Theory.

[12]  Udo Kreickemeier,et al.  Firm Heterogeneity and the Labour Market Effects of Trade Liberalisation , 2007, SSRN Electronic Journal.

[13]  Jennifer F. Reinganum.  Dynamic games of innovation , 1981 .

[14]  Paul De Grauwe,et al.  Globalization and the price decline of illicit drugs , 2009 .

[15]  David Pérez-Castrillo,et al.  Optimal monitoring to implement clean technologies when pollution is random , 2007 .

[16]  Michela Redoano,et al.  Does Centralization Affect the Number and Size of Lobbies? , 2007 .

[17]  Prajit K. Dutta,et al.  Optimal management of an R&D budget , 1997 .

[18]  J. Amegashie,et al.  Moral Hazard and the Composition of Transfers: Theory With an Application to Foreign Aid , 2007 .

[19]  Robert S. Chirinko,et al.  The Fisher/Cobb-Douglas Paradox, Factor Shares, and Cointegration , 2007 .

[20]  D. Teece.  Firm organization, industrial structure, and technological innovation☆ , 1996 .

[21]  Giovanni Immordino,et al.  Optimal Regulation of Auditing , 2007, SSRN Electronic Journal.

[22]  Cheng Hsiao,et al.  Diagnostic Tests of Cross Section Independence for Nonlinear Panel Data Models , 2007 .

[23]  Frederick van der Ploeg,et al.  Prudent Budgetary Policy: Political Economy of Precautionary Taxation , 2007 .

[24]  Paul De Grauwe,et al.  Modeling Optimism and Pessimism in the Foreign Exchange Market , 2007 .

[25]  Claude Fluet,et al.  Rules of Proof, Courts, and Incentives , 2008 .

[26]  Volker Grossmann,et al.  Anti-Competitive Conduct, In-House R&D, and Growth , 2007, SSRN Electronic Journal.

[27]  Gerhard Illing,et al.  Financial Stability and Monetary Policy - A Framework , 2007, SSRN Electronic Journal.

[28]  Aldo Rustichini,et al.  Better Late than Early: Vertical Differentiation in the Adoption of a New Technology , 1993 .

[29]  Patrick Sevestre,et al.  Lumpy Price Adjustments: A Microeconometric Analysis , 2006, SSRN Electronic Journal.

[30]  Heidrun C. Hoppe,et al.  Innovation timing games: a general framework with applications , 2005, J. Econ. Theory.

[31]  H. Verbon.  Migrating Football Players, Transfer Fees and Migration Controls , 2007, SSRN Electronic Journal.

[32]  Johannes Van Biesebroeck,et al.  Productivity Dynamics with Technology Choice: An Application to Automobile Assembly , 2003 .

[33]  S. Carson,et al.  Health During Industrialization: Evidence from the 19th Century Pennsylvania State Prison System , 2007, SSRN Electronic Journal.

[34]  Erkki Koskela,et al.  Equilibrium Unemployment with Outsourcing and Wage Solidarity Under Labour Market Imperfections , 2007 .

[35]  E. Janeba,et al.  Exports, Unemployment, and the Welfare State , 2007 .

[36]  J. Lawarree,et al.  Bribery vs. Extortion: Allowing the Lesser of Two Evils , 2007 .

[37]  Gonçalo Pacheco-de-Almeida,et al.  The Effect of Time-to-Build on Strategic Investment under Uncertainty , 2003 .

[38]  Paul Belleflamme,et al.  Negative Intra-Group Externalities in Two-Sided Markets , 2009 .

[39]  J. Choi,et al.  The economics of politically-connected firms , 2007 .

[40]  Fredrik Wulfsberg,et al.  Are Real Wages Rigid Downwards? , 2007 .

[41]  E. Koskela,et al.  Tax Progression Under Collective Wage Bargaining and Individual Effort Determination , 2007, SSRN Electronic Journal.

[42]  C. Shapiro,et al.  R&D Rivalry with Licensing or Imitation , 1987 .

[43]  Sascha O. Becker,et al.  Was Weber Wrong? A Human Capital Theory of Protestant Economic History , 2007 .

[44]  Heidrun C. Hoppe.  Second-mover advantages in the strategic adoption of new technology under uncertainty , 2000 .

[45]  A. Dreher,et al.  Greasing the Wheels of Entrepreneurship? Impact of Regulations and Corruption on Firm Entry , 2007 .

[46]  Franz C. Palm,et al.  The Behavior of the Maximum Likelihood Estimator of Dynamic Panel Data Sample Selection Models , 2007 .

[47]  Boleslaw Tolwinski,et al.  R&D cooperation or competition? , 1999 .

[48]  Andreas Haufler,et al.  Competition for Firms in an Oligopolistic Industry: Do Firms or Countries Have to Pay? , 2007, SSRN Electronic Journal.

[49]  G. Schnabl.  Exchange Rate Volatility and Growth in Emerging Europe and East Asia , 2007, SSRN Electronic Journal.

[50]  B. Frey.  Overprotected Politicians , 2007 .

[51]  D. Fudenberg,et al.  Preemption and Rent Equalization in the Adoption of New Technology , 1985 .

[52]  P. Geraats.  Political Pressures and Monetary Mystique , 2007 .

[53]  W. Peters,et al.  Equal sacrifice and fair burden-sharing in a public goods economy , 2007, SSRN Electronic Journal.

[54]  E. Sadka,et al.  Incorporating Affirmative Action into the Welfare State , 2007, SSRN Electronic Journal.

[55]  Ulrich Lehmann-Grube,et al.  Second-Mover Advantages in Dynamic Quality Competition , 2001 .

[56]  Gene M. Grossman,et al.  Optimal Dynamic R&D Programs , 1985 .

[57]  Thomas Eichner,et al.  Efficient CO2 Emissions Control with National Emissions Taxes and International Emissions Trading , 2007 .

[58]  F. Schneider,et al.  Size and Development of the Shadow Economy and of Do-it-Yourself Activities in Germany , 2007, SSRN Electronic Journal.

[59]  Assaf Razin,et al.  The Role of Immigration in Sustaining the Social Security System: A Political Economy Approach , 2007, SSRN Electronic Journal.

[60]  Dirk Simons,et al.  Transfer Pricing or Formula Apportionment? Tax-Induced Distortions of Multinationals' Investment and Production Decisions , 2007, SSRN Electronic Journal.

[61]  David J. Teece,et al.  Technological innovation: Firm capabilities and managerial decision making: A theory of innovation biases , 1997 .

[62]  Thorvaldur Gylfason.  The International Economics of Natural Resources and Growth , 2007, SSRN Electronic Journal.

[63]  K. Suzumura.  Cooperative and noncooperative R&D in an oligopoly with spillovers , 1992 .

[64]  S. Bhattacharya,et al.  Gains and Losses of India-China Trade Cooperation - A Gravity Model Impact Analysis , 2007, SSRN Electronic Journal.

[65]  Marcelo Resende,et al.  Hierarchical Structure in Brazilian Industrial Firms: An Econometric Study , 2007 .

[66]  P. Pestieau,et al.  Income taxation of couples and the tax unit choice , 2007, SSRN Electronic Journal.

[67]  Jukka Pirttila,et al.  A ‘Leaky Bucket’ in the Real World: Estimating Inequality Aversion Using Survey Data , 2007 .

[68]  Henrik Jordahl,et al.  The Looks of a Winner: Beauty, Gender and Electoral Success , 2006, SSRN Electronic Journal.

[69]  Ludger Woessmann,et al.  Fundamental Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries , 2007, SSRN Electronic Journal.

[70]  A. Jacquemin,et al.  Cooperative and Noncooperative R&D in Duopoly with Spillovers , 1988 .

[71]  Gabriel Felbermayr,et al.  Endogenous Skill Formation and the Source Country Effects of International Labor Market Integration , 2007, SSRN Electronic Journal.

[72]  Per Pettersson-Lidbom,et al.  Behavior Under Social Pressure: Empty Italian Stadiums and Referee Bias , 2007 .

[73]  Balázs Égert,et al.  Dutch Disease Scare in Kazakhstan: Is it real? , 2007, SSRN Electronic Journal.

[74]  S. Voigt,et al.  The economic effects of constitutions: replicating—and extending—Persson and Tabellini , 2007 .

[75]  Ondrej Schneider,et al.  The EU Budget Dispute - A Blessing in Disguise? , 2007 .

[76]  S. Holden,et al.  Downward Nominal Wage Rigidity in the OECD , 2007, SSRN Electronic Journal.