Duplication of R&D and industry concentration

Akram Temimi, Sami Dakhlia and Flavio Menezes

No 437, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

Abstract: The purpose of the literature on Research Joint Ventures (RJV), pioneered by DíAspremont and Jacquemin (1988) and Kamien, Muller, and Zang (1992), has been to combine the best of two worlds: to appropriately deal with R&D spillovers while preserving competition in the product market. Moreover, RJVs eliminate duplication of R&D. Thus, at least in theory, RJVs dominate other solutions such as subsidies. If, however, we are concerned about risks of cartelization, then Spenceís (1984) subsidy-based solution for independently acting firms, is a viable alternative that cannot be dismissed. Indeed, in contrast to the previous literature, we find that in the presence of R&D subsidies, market performance may unambiguously improve with the number of firms in the market.

Date: 2001-09-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://repositorio.fgv.br/bitstreams/b2a2f757-7c1 ... 502103f3635/download (application/pdf)

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:fgv:epgewp:437

Access Statistics for this paper

More papers in FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil) Contact information at EDIRC.
Bibliographic data for series maintained by Núcleo de Computação da FGV EPGE ().