The effect of entry on R&D networks
Emmanuel Petrakis () and
Nikolas Tsakas ()
University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics
We investigate the effect of potential entry on the formation and stability of R&D networks considering farsighted firms. We show that the presence of a potential entrant often alters the incentives of incumbent firms to establish an R&D link. In particular, incumbent firms may choose to form an otherwise undesirable R&D collaboration in order to deter the entry of a new firm. Moreover, an incumbent firm may refrain from establishing an otherwise desirable R&D collaboration, expecting to form a more profitable R&D link with the entrant. Finally, potential entry may lead an inefficient incumbent to exit the market. We also perform a welfare analysisand show that market and societal incentives are often misaligned.
Keywords: R&D Networks; Entry; Farsighted stability (search for similar items in EconPapers)
JEL-codes: D85 L24 O33 (search for similar items in EconPapers)
Pages: 57 pages
New Economics Papers: this item is included in nep-com, nep-cse, nep-ent, nep-ind, nep-ino, nep-knm, nep-sog and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: The effect of entry on R&D networks (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ucy:cypeua:08-2016
Access Statistics for this paper
More papers in University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics
Bibliographic data for series maintained by ().