R&D INVESTMENTS AND SPILLOVERS UNDER ENDOGENOUS ABSORPTIVE CAPACITY: COMPETITIVE R&D CANNOT TAKE FULL-ADVANTAGE OF COMPLEMENTARITY IN ABSORPTIVE CAPACITY WHILE COOPERATIVE R&D CAN

Mário A.P.M. Da Silva ()
Additional contact information
Mário A.P.M. Da Silva: Universidade do Porto, Portugal

Eurasian Journal of Economics and Finance, 2018, vol. 6, issue 1, 16-24

Abstract: We show that the setting up of general conditions on complementarity in absorptive capacity gives rise to different, if not opposite Nash equilibrium outcomes to those found when absorptive capacity is assumed to be determined only by the similarity of R&D orientations. Firms that cooperate in R&D can take full-advantage of complementarity in R&D by adopting firm-specific R&D paths, which appears to contradict findings and predictions of existing theoretical literature on R&D and spillovers. Oddly, firms competing in R&D cannot gain the most from the potential of complementarity in knowledge by not choosing firm-specific R&D approaches in equilibrium under even milder conditions, which is contrary to another prediction of existing related models

Keywords: Absorptive Capacity; Complementarities; R&D; Knowledge Spillovers (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://eurasianpublications.com/wp-content/uploads/2021/02/EJEF-6.1.2.pdf (text/html)

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:ejn:ejefjr:v:6:y:2018:i:1:p:16-24

Access Statistics for this article

Eurasian Journal of Economics and Finance is currently edited by Xuan Vinh Vo

More articles in Eurasian Journal of Economics and Finance from Eurasian Publications
Bibliographic data for series maintained by Esra Barakli ().