Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/162426 
Year of Publication: 
2016
Series/Report no.: 
Working Paper No. 223
Publisher: 
University of Zurich, Department of Economics, Zurich
Abstract: 
We analyze the endogenous formation of R&D networks, where firms are active in different product markets and can benefit from R&D spillovers form collaborating firms within or across different industries. R&D spillovers help firms to introduce process innovations to lower their production costs. Product innovations introduce an escape-competition effect, through which firms can enter new markets with fewer competitors. We provide a complete equilibrium characterization in which both, the network of R&D collaborations as well as the market structure, are endogenously determined. We show that the coevolution of market and network structure matter for the relationship between competition and innovation. Moreover, our model allows us to explain differences in the R&D network structures observed across different industries, and how they are related to different levels of competition in these industries.
Subjects: 
R&D collaborations
networks
competition
innovation
JEL: 
D85
L24
O33
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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