Abstract
We show the effects of entry by a non-innovating firm on the innovating firms' incentive for undertaking cooperative R&D, highlighting the implications of knowledge spillover. Entry by a non-innovating firm may either increase or decrease the incentive for cooperative R&D compared with no entry, depending on the innovating and the non-innovating firms' gains from knowledge spillover. The entry deterrence motive, which has so far been ignored in the literature, plays an important role in determining R&D organization in our analysis.
Original language | English |
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Pages (from-to) | 52-70 |
Journal | Manchester School |
Volume | 82 |
Issue number | 1 |
Early online date | 1 Nov 2012 |
DOIs | |
Publication status | Published - Jan 2014 |