EconPapers    
Economics at your fingertips  
 

Product R&D Coopetition and Firm Performance

Ramsza Michał () and Karbowski Adam ()
Additional contact information
Ramsza Michał: Department of Mathematics and Mathematical Economics, Warsaw School of Economics, Warsaw, Poland
Karbowski Adam: Department of Business Economics, Warsaw School of Economics, Warsaw, Poland

The B.E. Journal of Theoretical Economics, 2020, vol. 20, issue 2, 9

Abstract: We investigate firms’ behavior in demand-enhancing product R&D. We consider and compare a cooperative and non-cooperative R&D investment setting by firms. In a non-cooperative scenario (R&D competition), firms decide on their R&D investments and outputs unilaterally. In a cooperative scenario (R&D coopetition), firms engage in a bargaining process to reach a binding R&D agreement. Firms through bargaining can reach an R&D agreement which specifies their R&D investment levels. The investment levels under R&D coopetition are higher compared with the investment levels under R&D competition. Firms’ profits are also higher under R&D coopetition compared with R&D competition. We conclude that R&D coopetition can alleviate the individual R&D investment disincentive and work as a strategic instrument that enhances product innovation and firms’ profits.

Keywords: Product R&D; R&D investments; bargaining; firm performance (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1515/bejte-2018-0141 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejtec:v:20:y:2020:i:2:p:9:n:4

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/bejte

Access Statistics for this article

The B.E. Journal of Theoretical Economics is currently edited by Burkhard C. Schipper

More articles in The B.E. Journal of Theoretical Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2020-07-05
Handle: RePEc:bpj:bejtec:v:20:y:2020:i:2:p:9:n:4