Defensive strategies in quality ladders

Ivan Ledezma

Journal of Economic Dynamics and Control, 2013, vol. 37, issue 1, 176-194

Abstract: This paper analyses the potentially defensive behaviour of patent-race winners and the ensuing effect on aggregate R&D effort. We propose a quality-ladder model where leaders strategically acquire a technology advantage and are able to innovate. In this context, product-market regulation, by affecting this strategic behaviour, may have either a positive or negative effect on aggregate R&D intensity. The negative effect is likely to pertain in liberal markets, whereas the positive influence arises in more regulated environments, and can be stronger for larger jumps in innovation. These steady-state equilibrium outcomes are consistent with the puzzling patterns in data from manufacturing industries in 14 OECD countries over the 1987–2003 period.

Keywords: Innovative leaders; Quality ladders; Product market regulation; R&D (search for similar items in EconPapers)
JEL-codes: L13 O31 O33 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165188912001613
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Defensive Strategies in the Quality Ladders (2013)
Working Paper: Defensive Strategies in the Quality Ladders (2010)
Working Paper: Defensive strategies in the quality ladders (2008)
Working Paper: Defensive strategies in the quality ladders (2008)
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:eee:dyncon:v:37:y:2013:i:1:p:176-194

DOI: 10.1016/j.jedc.2012.07.006

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Catherine Liu ().