R&D Investments under Endogenous Cluster Formation

Herbert Dawid and Tim Hellmann

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: We study investments in R&D and the formation of R&D clusters of firms which are competitors in the market. Firms first decide on long-term R&D investment, then form research clusters according to the unanimity game, and finally compete in quantities. Equilibria with no-investment might co-exist with equilibria where a large fraction of firms invest in R&D. Firms tend to over-invest compared to a scenario where research clusters are ex-ante fixed and also compared to the welfare optimum.

JEL-codes: C71 C72 L13 O30 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-gth, nep-ino and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/168233/1/VfS-2017-pid-3350.pdf (application/pdf)

Related works:
Working Paper: R&D Investments under Endogenous Cluster Formation (2016)
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:zbw:vfsc17:168233

Access Statistics for this paper

More papers in VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().