The development of science and technology in recent times is hosting major changes with the emergence of new key concepts, e.g. nanote- chnology, micro nanoelectronic, etc. Techno- logies are changing the way in which society operates and there is a need to ensure that they are used in a best...

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....