R&D investments and spillovers under endogenous absorptive capacity: Competitive R&D cannot take full-advantage of complementarity in absorptive capacity while cooperative R&D can

Content Provider	Semantic Scholar
Author	Silva, Mario
Copyright Year	2018
Abstract	We show that the setting up of general conditions on complementarity in absorptive capacity gives rise to different, if not opposite Nash equilibrium outcomes to those found when absorptive capacity is assumed to be determined only by the similarity of R&D orientations. Firms that cooperate in R&D can take full advantage of complementarity in R&D by adopting firm-specific R&D paths, which appears to contradict Kamien and Zang’s (2000) findings, and so would contradict Weithaus’ (2005) predictions. Oddly, firms competing in R&D cannot gain the most from the potential of complementarity in knowledge by not choosing firm-specific R&D approaches in equilibrium under even milder conditions, which is contrary to another prediction of the Kamien and Zang’s and Weithaus’ models.
Starting Page	16
Ending Page	24
Page Count	9
File Format	PDF HTM / HTML
DOI	10.15604/ejef.2018.06.01.002
Alternate Webpage(s)	http://wps.fep.up.pt/wps/wp595.pdf
Alternate Webpage(s)	https://doi.org/10.15604/ejef.2018.06.01.002
Volume Number	6
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article