Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307825 
Year of Publication: 
2020
Citation: 
[Journal:] Economic Review: Journal of Economics and Business [ISSN:] 2303-680X [Volume:] 18 [Issue:] 2 [Year:] 2020 [Pages:] 3-16
Publisher: 
University of Tuzla, Faculty of Economics, Tuzla
Abstract: 
This paper studies the impact of cooperative R&D on innovation, welfare, and profitability in vertically related industries with differentiated products. The model incorporates two vertically related industries, with horizontal spillovers within industries and vertical spillovers between them. Upstream firms produce a homogeneous intermediate good, while downstream firms provide differentiated products. Three types of R&D cooperation are studied: no cooperation, horizontal cooperation, and vertical cooperation. The comparison of cooperation settings in terms of R&D and profitability shows that although vertical cooperation yields higher innovation and welfare, it may lead to overinvestment in R&D.
Subjects: 
vertical spillovers
horizontalspillovers
product differentiation
R&D cooperation
JEL: 
L13
O32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.