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- W2123195780 abstract "The precompetitive R&D literature has viewed cooperative and noncooperative R&D as substitutes. In this paper a more realistic approach is taken, where both cooperative and noncooperative R&D are performed in parallel. In the first stage, firms determine the optimal investments in both types of R&D and in the second stage they compete in output. It is found that information sharing between cooperating firms contributes not only to cooperative R&D, but also to noncooperative R&D. The two types of R&D reinforce each other. The level of cooperative R&D may be higher or lower than noncooperative R&D. In a Cournot duopoly, the share of cooperative R&D lies between 20% and 80% of total R&D and this share increases with spillovers and information sharing. It is always optimal to subsidize half the costs of cooperative R&D, while the subsidy to noncooperative R&D is unchanged from the standard model. Consumers prefer intermediate levels of spillovers and information sharing, while firms prefer higher levels of spillovers, which entail lower levels of information sharing." @default.
- W2123195780 created "2016-06-24" @default.
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- W2123195780 date "2004-12-10" @default.
- W2123195780 modified "2023-09-24" @default.
- W2123195780 title "The Allocation of Resources to Cooperative and Noncooperative R&D" @default.
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