Volume 50, Number 3, July-September 2016
|Page(s)||611 - 625|
|Published online||20 July 2016|
Strategic investments in R&D and efficiency in the presence of free riders∗
1 École Supérieure de Tunis, Tunisia.
2 Chair in Game Theory and Management, GERAD, HEC Montréal, Canada.
3 NEOMA Business School, Mont Saint-Aignan, France.
Accepted: 12 November 2015
We consider an industry composed of two types of firms, namely, innovators that invest in process research and development (R&D), and surfers that do not but benefit from knowledge spillover.We verify if the conclusions reached in the seminal paper by d’Aspremont and Jacquemin hold in this setting.We obtain that cooperation among innovators still lead to higher R&D and output levels than when they do not cooperate.Our main result is that the presence of surfers in an industry can be welfare improving under some conditions.
Mathematics Subject Classification: 91A10 / 91A20
Key words: Investments in R&D / cooperation / noncooperation / Spillover / free riders / social Welfare
© EDP Sciences, ROADEF, SMAI 2016
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.