Persistence of monopoly, innovation, and R&D spillovers

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F16%3A00468782" target="_blank" >RIV/00216208:11640/16:00468782 - isvavai.cz</a>

Alternative codes found

RIV/67985998:_____/16:00466280

Result on the web

<a href="http://dx.doi.org/10.1016/j.rie.2016.07.006" target="_blank" >http://dx.doi.org/10.1016/j.rie.2016.07.006</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.rie.2016.07.006" target="_blank" >10.1016/j.rie.2016.07.006</a>

Result language

angličtina

Original language name

Persistence of monopoly, innovation, and R&D spillovers

Original language description

We build a dynamic duopoly model that accounts for the empirical observation of monopoly persistence in the long run. More specifically, we analyze the conditions under which it is optimal for the market leader to undertake pre-emptive R&D investment (“strategic predation strategy) that eventually leads to exit of the follower firm. The follower is assumed to benefit from innovative activities of the leader through R&D spillovers. We show that strategic predation becomes an attractive strategy to embrace when the efficiency of R&D is high enough and when R&D spillovers are not large. The steady-state values of R&D investment in a dynamic model can be interpreted as the generalized values of the equilibrium values obtained in the corresponding static model. Finally, a distinct implication of our dynamic set-up is that it provides an explanation for the puzzling empirical findings, namely the presence of both negative (or not significant) and positive R&D spillovers from FDI in transition and emerging economies.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AH - Economics

OECD FORD branch

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Project

<a href="/en/project/GA15-24642S" target="_blank" >GA15-24642S: Effects of globalization and foreign direct investment on innovations and efficiency of domestic firms</a><br>

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Research in Economics

ISSN

1090-9443

e-ISSN

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Volume of the periodical

70

Issue of the periodical within the volume

4

Country of publishing house

GB - UNITED KINGDOM

Number of pages

21

Pages from-to

714-734

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-84997343310