DP276 Strategic R&D Policy
|Author(s):||John Beath, Yannis Katsoulacos, David Ulph|
|Publication Date:||October 1988|
|Keyword(s):||Duopoly, Industrial Policy, Innovation, Joint Ventures, R&D|
|JEL(s):||612, 616, 621|
|Programme Areas:||Applied Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=276|
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.