Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93856
Authors: 
von Graevenitz, Georg
Year of Publication: 
2004
Series/Report no.: 
SFB/TR 15 Discussion Paper 29
Abstract: 
We analyse economic welfare in R&D intensive industries under varying assumptions on the spillover process. The focus lies on spillover processes with complementary R&D investments such as those modelling absorptive capacity. There spillovers give rise to both negative and positive externalities. We show that the rationale for public policy intervention is strengthened where spillovers also have positive effects. This conclusion is based on the supermodularity of the spillover process and the investment game. We characterise a large class of spillover processes with similar implications for public policy. We show that results of much empirical work on absorptive capacity extend to this class of models.
Subjects: 
spillovers
complementarity
absorptive capacity
supermodularity
oligopolistic R&D
JEL: 
L13
O31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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