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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...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2020
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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. |
format | Online Article Text |
id | pubmed-7252648 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2020 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
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 |
work_keys_str_mv | AT grebelthomas competitionandprivaterdinvestment AT nestalionel competitionandprivaterdinvestment |