The impact of piracy on innovation in the presence of technological and market uncertainty

Dyuti Banerjee and Ishita Chatterjee

Information Economics and Policy, 2010, vol. 22, issue 4, 391-397

Abstract: With a single innovating firm facing only technological uncertainty, piracy unambiguously retards innovation. However, with R&D competition where firms face both market and technological uncertainties, we show that if the two firms differ "significantly" with respect to the efficiency in R&D investment, then piracy increases the R&D investment of the less efficient firm and reduces that of the more efficient firm. In this case piracy enhances the overall probability of a successful innovation.

Keywords: Innovation; Market; uncertainty; R&; D; race; Technological; uncertainty (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: On the Impact of Piracy on Innovation in the Presence of Technological and Market Uncertainty (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:22:y:2010:i:4:p:391-397

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