Economics at your fingertips  

Cooperative R&D with Differentiated Products in Vertically Related Industries

Gamal Atallah () and Parisa Pourkarimi ()
Additional contact information
Parisa Pourkarimi: Department of Economics, Carleton University

Working Papers from University of Ottawa, Department of Economics

Abstract: This paper studies the impact of cooperative R&D on innovation, welfare, and profitability in vertically related industries where products are differentiated. The model incorporates two vertically related industries, with horizontal spillovers within each industry and vertical spillovers between the two industries. Upstream firms produce a homogeneous intermediate good, while downstream firms provide differentiated products. Three types of R&D cooperation are studied: no cooperation, horizontal cooperation, and vertical cooperation. The comparison of cooperation settings in terms of R&D and of profitability shows that although vertical cooperation yields higher innovation and welfare, it may lead firms to over–invest in R&D.

Keywords: Vertical spillovers; Horizontal spillovers; Product differentiation; R&D Cooperation. (search for similar items in EconPapers)
Pages: 26 pages
Date: 2020
New Economics Papers: this item is included in nep-com, nep-cse, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (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:

Access Statistics for this paper

More papers in Working Papers from University of Ottawa, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Diane Ritchot ().

Page updated 2021-11-25
Handle: RePEc:ott:wpaper:2007e