Market competition, R&D spillovers, and firms' cost asymmetry

• Published in: Economics of innovation and new technology Vol. 29; no. 8; pp. 847 - 865
• Main Authors: Ishikawa, Nana, Shibata, Takashi
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 16.11.2020; Taylor & Francis Ltd
• Subjects: Asymmetric costs; Asymmetry; Companies; Competition; Investments; Low cost; Markets; oligopoly; R&D; Research & development; spillover; two-stage Cournot

We examine the effects of firms' cost asymmetry on R&D investments. We obtain five novel results. First, the social preference between noncooperative and cooperative R&D investments is independent of the degree of firms' cost asymmetry. Second, R&D investments of low-cost firms...