Header

UZH-Logo

Maintenance Infos

Dynamic R&D networks with process and product innovations


König, Michael D (2016). Dynamic R&D networks with process and product innovations. Working paper series / Department of Economics 223, University of Zurich.

Abstract

We analyze the endogenous formation of R&D networks, where firms are active in different product markets and can benefit from R&D spillovers form collaborating firms within or across different industries. R&D spillovers help firms to introduce process innovations to lower their production costs. Product innovations introduce an escape-competition effect, through which firms can enter new markets with fewer competitors. We provide a complete equilibrium char- acterization in which both, the network of R&D collaborations as well as the market structure, are endogenously determined. We show that the coevolution of market and network structure matter for the relationship between competition and innovation. Moreover, our model allows us to explain differences in the R&D network structures observed across different industries, and how they are related to different levels of competition in these industries.

Abstract

We analyze the endogenous formation of R&D networks, where firms are active in different product markets and can benefit from R&D spillovers form collaborating firms within or across different industries. R&D spillovers help firms to introduce process innovations to lower their production costs. Product innovations introduce an escape-competition effect, through which firms can enter new markets with fewer competitors. We provide a complete equilibrium char- acterization in which both, the network of R&D collaborations as well as the market structure, are endogenously determined. We show that the coevolution of market and network structure matter for the relationship between competition and innovation. Moreover, our model allows us to explain differences in the R&D network structures observed across different industries, and how they are related to different levels of competition in these industries.

Statistics

Downloads

10 downloads since deposited on 29 Mar 2016
6 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:D85, L24, O33
Uncontrolled Keywords:R&D collaborations, networks, competition, innovation
Language:English
Date:March 2016
Deposited On:29 Mar 2016 12:03
Last Modified:08 Dec 2017 19:19
Series Name:Working paper series / Department of Economics
Number of Pages:21
ISSN:1664-7041
Official URL:http://www.econ.uzh.ch/static/wp/econwp223.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers-new.php

Download

Download PDF  'Dynamic R&D networks with process and product innovations'.
Preview
Filetype: PDF
Size: 2MB