R&D Expenditure in a Competitive Landscape: A Game Theoretic Approach

Salman Ali and Syed Mizanur Rahman
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Salman Ali: Strategic Management Area Indian Institute of Management Shillong, India
Syed Mizanur Rahman: Informatik Area Technische Universit?t Kaiserslautern, Germany

International Journal of Business and Economics, 2020, vol. 19, issue 1, 47-60

Abstract: A firm’s R&D (Research & Development) expenditure is dependent on the competitive environment and the industry structure it operates in. The purpose of this paper is to understand the drivers of a firm’s R&D that are related to the industry structure and to predict the nature of R&D expenditure incurred by firms in different scenarios. We scroll through the extant literature on various game theoretic models related to R&D expenditure in different contexts before coming up with a conceptual model that can be tested and developed further. We anticipate this framework can be useful to understand as well as to forecast the R&D spending pattern at the level of individual firms and for a whole industry. Apart from its contribution to literature, we also discuss some prospective managerial and policy implications of this model.

Keywords: R&D (Research & Development); Industry Structure; Conceptual Model; Game Theory; Symmetric Model; Asymmetric Model. (search for similar items in EconPapers)
JEL-codes: C79 L13 O32 O39 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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