Spillovers Reconsidered : Analysing Economic Welfare under complementarities in R & D
نویسنده
چکیده
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. JEL Classification: L13, O31
منابع مشابه
Transparency of Information and Coordination in Economies with Investment Complementarities* George-Marios Angeletos MIT and NBER
Economies with production externalities, demand spillovers, incomplete financial markets, and Keynesian frictions are only a few examples where macroeconomic complementarities play a prominent role. Within this class of economies, how does the precision of publicly provided and privately collected information affect equilibrium allocations and social welfare? And what is the optimal transparenc...
متن کاملR&D Spillovers, Trade Integration And Expansion Of Trade Flows In East- West Asia And Pacific
متن کامل
Comparing Cournot and Bertrand Equilibria in a Differentiated Duopoly with Product R&D
This paper compares Bertrand and Cournot equilibria in a differentiated duopoly with substitute goods and product R&D. I find that R&D expenditure, prices and firms’ net profits are always higher under quantity competition than under price competition. Furthermore, output, consumer surplus and total welfare are higher in the Bertrand equilibrium than in the Cournot equilibrium if either R&D spi...
متن کاملProduct competition and R&D investment under spillovers within full or partial collusion games
The paper investigates firms’ behavior and outcomes (levels of costreducing R&D, output, profit and welfare in equilibrium) in a differentiated duopoly with process innovation. One of the important features in this paper is that spillovers operate in the R&D stage and are tied to the degree of product substitutability as well as the extent of technological proximity/alienation of the research p...
متن کاملSpatial Analysis of R&D and Technology Spillovers on Energy Intensity in Iran
Today, energy is known as one of the main factors for the formation and development of industrial societies And the availability of countries to various energy sources represents their potential for political and economic progress. Therefore, the main objective of this study was to investigate the effect of technology factors on the intensity of energy in 29 provinces of Iran (except for Alborz...
متن کامل