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R&D competition and the persistence of technology leadership

Beladi, Hamid; Mukherjee, Arijit

Authors

Hamid Beladi e-email:hamid.beladi@utsa.edu



Abstract

We show that whether a technology leader invests more in R&D compared to a technology follower may depend on the R&D process and whether the follower is in the market. Considering Cournot competition, we show that if the firms are in the market, the technology leader (follower) invests more in R&D under a step-by-step R&D process (when the firms target similar technologies). However, if the technology follower can enter the market only if it is successful in R&D, the technology follower may invest more (invests more) in R&D under the step-by-step R&D process (when the firms target similar technologies). We also show the implications of Bertrand competition. * We thank two anonymous referees of this journal for valuable comments and suggestions. The usual disclaimer applies.

Journal Article Type Article
Publication Date Jul 27, 2020
Journal International Journal of Economic Theory
Print ISSN 1742-7355
Electronic ISSN 1742-7363
Publisher Wiley
Peer Reviewed Peer Reviewed
APA6 Citation Beladi, H., & Mukherjee, A. (2020). R&D competition and the persistence of technology leadership. International Journal of Economic Theory, https://doi.org/10.1111/ijet.12289
DOI https://doi.org/10.1111/ijet.12289
Keywords Innovation; Technology leader; Technology follower
Publisher URL https://onlinelibrary.wiley.com/doi/abs/10.1111/ijet.12289
Additional Information This is the peer reviewed version of the following article: Beladi, H, Mukherjee, A. R&D competition and the persistence of technology leadership. Int J Econ Theory. 2020; 1– 13, which has been published in final form at https://doi.org/10.1111/ijet.12289. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.

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