Cost-Reducing and Demand-Creating R&D With Spillovers / Richard C. Levin, Peter C. Reiss.

Format:

Book

Author/Creator:

Levin, Richard C.

Contributor:

National Bureau of Economic Research.

Reiss, Peter C.

Series:

Working Paper Series (National Bureau of Economic Research) no. w2876.

NBER working paper series no. w2876

Language:

English

Subjects (All):

Econometric models.

Industrial productivity.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1989.

Cambridge, Mass. : National Bureau of Economic Research, 1989.

Summary:

This paper analyzes R&D policies when the returns to cost-reducing and demand-creating R&D are imperfectly appropriable and market structure is endogenous. Previous characterizations of appropriability are generalized to permit the possibility that own and rival R&D are imperfect substitutes. We also describe how. equilibrium expenditures on process and product R&D, as well as equilibrium market structure, depend on technological opportunities and spillovers. In contrast to previous work, diminished appropriability does not necessarily reduce R&D expenditures. For example, under some conditions, an increase in the extent of process (product) spillovers will lead to an increase in product (process) R&D. We estimate several variants of the model using manufacturing line of business data and data from a survey of R&D executives.

Notes:

Print version record

March 1989.