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Competition and private R&D investment

We investigate the determinants of the sign of Research and Development reaction functions of rival firms. Using a two-stage n-firm Cournot competition game, we show that this sign depends on four types of environments in terms of product rivalry and technology spillovers. We test the predictions of...

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Detalles Bibliográficos
Autores principales: Grebel, Thomas, Nesta, Lionel
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7252648/
https://www.ncbi.nlm.nih.gov/pubmed/32459818
http://dx.doi.org/10.1371/journal.pone.0232119
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author Grebel, Thomas
Nesta, Lionel
author_facet Grebel, Thomas
Nesta, Lionel
author_sort Grebel, Thomas
collection PubMed
description We investigate the determinants of the sign of Research and Development reaction functions of rival firms. Using a two-stage n-firm Cournot competition game, we show that this sign depends on four types of environments in terms of product rivalry and technology spillovers. We test the predictions of the model on the world’s largest manufacturing corporations. Assuming that firms make R&D investments based on the R&D effort of the representative rival company, we develop a dynamic panel data model that accounts for the endogeneity of the decision of the rival firm. Empirical results thoroughly corroborate the validity of the theoretical model.
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spelling pubmed-72526482020-06-10 Competition and private R&D investment Grebel, Thomas Nesta, Lionel PLoS One Research Article We investigate the determinants of the sign of Research and Development reaction functions of rival firms. Using a two-stage n-firm Cournot competition game, we show that this sign depends on four types of environments in terms of product rivalry and technology spillovers. We test the predictions of the model on the world’s largest manufacturing corporations. Assuming that firms make R&D investments based on the R&D effort of the representative rival company, we develop a dynamic panel data model that accounts for the endogeneity of the decision of the rival firm. Empirical results thoroughly corroborate the validity of the theoretical model. Public Library of Science 2020-05-27 /pmc/articles/PMC7252648/ /pubmed/32459818 http://dx.doi.org/10.1371/journal.pone.0232119 Text en © 2020 Grebel, Nesta http://creativecommons.org/licenses/by/4.0/ This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Grebel, Thomas
Nesta, Lionel
Competition and private R&D investment
title Competition and private R&D investment
title_full Competition and private R&D investment
title_fullStr Competition and private R&D investment
title_full_unstemmed Competition and private R&D investment
title_short Competition and private R&D investment
title_sort competition and private r&d investment
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7252648/
https://www.ncbi.nlm.nih.gov/pubmed/32459818
http://dx.doi.org/10.1371/journal.pone.0232119
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