Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/111190
Authors: 
Letina, Igor
Year of Publication: 
2014
Series/Report no.: 
Working Paper Series, University of Zurich, Department of Economics 127 [rev.]
Abstract: 
Contrary to most of the literature, which focuses only on the level of investment in innovation, this paper examines both the variety of research projects undertaken and the amount of duplication of research. A characterization of the equilibrium market portfolio of R&D projects and the socially optimal portfolio is provided. It is shown that a merger decreases the variety of developed projects and decreases the amount of duplication of research. An increase in the intensity of competition among firms leads to an increase in the variety of developed projects and a decrease in the amount of duplication of research.
Subjects: 
Innovation
competition
R&D portfolio
market structure
JEL: 
L13
L22
O31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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