Inherent to most research projects is the fact that researchers learn about their project during the course of it. Research investments result in signals on development costs. This paper studies how this fact influences firms' investments, and how revenue sharing can correct inefficient...

We introduce time-dependent rewards into a general framework for analyzing innovative activity among firms with sunk costs of R&D. When firms are identical, innovation is delayed by an increase in the number of firms or a decrease in the size of the reward. When one firm has higher profit...

The realisation of the important role that innovation played to a country's well being gave rise to the search for the best business size, capable of producing new products and processes. In this paper, the authors argue for the discarding of the conventional wisdom of Small vs Large and the...

A model of location choice by Cournot oligopolists is presented, under the assumption that R&D spillovers depend on the distance between firms. We show that a variety of patters emerge. Agglomeration is optimal under certain assumptions. Geographical dispersion in a two- dimensional plane is...

The Model studies information sharing and the stability of cooperation in cost Research Joint Ventures (RJVs).

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.

Firms do product R&D (making new and better products) as well as process R&D (making cheaper products). There is evidence that firms denote an increasing share of R&D to process R&D over the life cycle of a product. There is also evidence that over time, the composition of buyers of a product...

This paper examines empirically the role of market structure for the influence of spillover effects on R&D-cooperations. The results of a microeconometric analysis, based on firm data on innovation, let in general presume that with intensified competition also the influence of spillovers on...

We present a model of endogenous firm growth with R&D investment and stochastic innovation as the engines of growth. The model for firm growth is a partial equilibrium model drawing on the quality ladder models in the macro growth literature, but also on the literature on patent races and the...