This paper models the simultaneous investments in cost-reducing and environmental R&D by asymmetric firms competing à la Cournot. Pollution rights are allocated by the regulator, and firms can trade pollution permits. Both R&D competition and R&D cooperation are considered; in the latter case,...

The paper analyses the relationship between technological collaboration and collusion. Firms can collude or defect on the output market, but with the novelty that there is a possibility of developing a new technology jointly. The development of the new technology is conditional on prior...

It has long been suspected that the organization and ownership of firms could affect the innovation performance of industries in Canada by influencing economic incentives to generate new products and processes. This paper provides a general overview of the theoretical and empirical literature on...

This paper studies the effect of tariffs on R&D expenditures when there are R&D spillovers between firms. We consider a three-stage game, where the government determines the amount of the tariff and R&D subsidy in the first stage, firms choose their R&D expenditures in the second stage, and...

This paper studies the decision of firms to expense or capitalize R&D expenditures. The firm has an incentive to mismatch the benefits and costs of R&D, expensing a larger portion of R&D when the benefits occur in the long-run and capitalizing a larger portion when the benefits occur in the...

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....

The model studies information sharing and the stability of cooperation in cost reducing Research Joint Ventures (RJVs). In a three-stage game-theoretic framework, firms decide on participation in a RJV, information sharing along with R&D expenditures, and output. An important feature of the...

This paper studies vertical R&D spillovers between upstream and downstream firms. The model incorporates two vertically related industries, with horizontal spillovers within each industry and vertical spillovers between the two industries. Four types of R&D cooperation are studied: no...