Discussion Paper Details

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Title: Strategic R&D Policy

Author(s): John Beath, Yannis Katsoulacos and David Ulph

Publication Date: October 1988

Keyword(s): Duopoly, Industrial Policy, Innovation, Joint Ventures and R&D

Programme Area(s): Applied Macroeconomics

Abstract: The outcome of technological competition between firms (or countries) depends on the resolution of two forces: the profit incentive and the competitive threat. This is illustrated using a simple duopoly model. This model is then used to analyze two policy issues: subsidizing R & D and collaborative research ventures. In evaluating the second of these, some use is made of numerical simulations.

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Bibliographic Reference

Beath, J, Katsoulacos, Y and Ulph, D. 1988. 'Strategic R&D Policy'. London, Centre for Economic Policy Research.