Discussion paper

DP276 Strategic R&D Policy

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.


Ulph, D, and Y Katsoulacos (1988), ‘DP276 Strategic R&D Policy‘, CEPR Discussion Paper No. 276. CEPR Press, Paris & London. https://cepr.org/publications/dp276