On the Impact of Piracy on Innovation in the Presence of Technological and Market Uncertainty

Dyuti Banerjee and Ishita Chatterjee

No 26-09, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: This paper analyses the effect of piracy on innovation in the presence of R&D competition with technological and market uncertainty. With a single innovating firm facing technological uncertainty, piracy unambiguously retards innovation. However, with R&D competition where firms face market and technological uncertainties, we show that piracy may enhance overall innovation. We also show that if the difference between the probabilities of success of the innovating firms is relatively large then piracy enhances the R&D investment and profit of the less efficient firm.

Keywords: Innovation; market uncertainty; R&D race; technological uncertainty (search for similar items in EconPapers)
JEL-codes: D21 D43 L13 L21 L26 O3 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2009-08
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.buseco.monash.edu.au/eco/research/paper ... nerjjechatterjee.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://www.buseco.monash.edu.au/eco/research/papers/2009/2609impactpiracybanerjjechatterjee.pdf [301 Moved Permanently]--> https://www.monash.edu/business/ [301 Moved Permanently]--> https://www.monash.edu/business)

Related works:
Journal Article: The impact of piracy on innovation in the presence of technological and market uncertainty (2010)
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:mos:moswps:2009-26

Ordering information: This working paper can be ordered from
https://www.monash.e ... esearch/publications

Access Statistics for this paper

More papers in Monash Economics Working Papers from Monash University, Department of Economics Department of Economics, Monash University, Victoria 3800, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Simon Angus ().