Innovation and Managerial Incentives: A Tale of Two Systems

Luca Lambertini ()

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: This paper describes R&D competition between a managerial firm and an entrepreneurial one, in a Cournot market. It is shown that a manager interested in output expansion exerts higher R&D efforts, yielding productive efficiency as compared to the performance of a strictly profit-seeking firm. This may ultimately yield monopoly power for the managerial firm, if technological spillovers in the industry are low enough.

Date: 2004
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:498

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