R&D Investment Competition and Efficiency in a Mixed Duopoly Model, with Endogenous Spillover

In this paper, a mixed duopoly model is used to explain how ownership structure influences the innovation performances of firms. A three stage-game adopted in study. first stage, firms make R&D expenditure which leads profit increasing; second choose level technological improvement they would like share with rival; and production quantity will be decided final stage. The theory explains that as long public continue their dual roles productive entities social safety nets, cannot purely profit-oriented, have poor performance.