COOPERATIVE R&D WITH DIFFERENTIATED PRODUCTS IN VERTICALLY RELATED INDUSTRIES
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....
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| Format: | Article |
| Language: | English |
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Faculty of Economics, University of Tuzla
2020-11-01
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| Series: | Economic Review |
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| Online Access: | http://er.ef.untz.ba/index.php/er/article/view/66 |
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| _version_ | 1823861242982301696 |
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| author | Parisa Pourkarimi Gamal Atallah |
| author_facet | Parisa Pourkarimi Gamal Atallah |
| author_sort | Parisa Pourkarimi |
| collection | DOAJ |
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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. Upstream firms produce a homogeneous intermediate good, while downstream firms provide differentiated products. Three types of R&D cooperation are studied: no cooperation, horizontal cooperation, and vertical cooperation. The comparison of cooperation settings in terms of R&D and profitability shows that although vertical cooperation yields higher innovation and welfare, it may lead to over–investment in R&D.
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| format | Article |
| id | doaj-art-2ff425079cfc4124a7e630cd4531db61 |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2020-11-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-2ff425079cfc4124a7e630cd4531db612025-02-10T00:30:54ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2020-11-01182COOPERATIVE R&D WITH DIFFERENTIATED PRODUCTS IN VERTICALLY RELATED INDUSTRIESParisa Pourkarimi0Gamal AtallahDepartment of Economics, Carleton University, Ottawa, Canada 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. Upstream firms produce a homogeneous intermediate good, while downstream firms provide differentiated products. Three types of R&D cooperation are studied: no cooperation, horizontal cooperation, and vertical cooperation. The comparison of cooperation settings in terms of R&D and profitability shows that although vertical cooperation yields higher innovation and welfare, it may lead to over–investment in R&D. http://er.ef.untz.ba/index.php/er/article/view/66vertical spillovershorizontal spilloversproduct differentiationR&D cooperation |
| spellingShingle | Parisa Pourkarimi Gamal Atallah COOPERATIVE R&D WITH DIFFERENTIATED PRODUCTS IN VERTICALLY RELATED INDUSTRIES Economic Review vertical spillovers horizontal spillovers product differentiation R&D cooperation |
| title | COOPERATIVE R&D WITH DIFFERENTIATED PRODUCTS IN VERTICALLY RELATED INDUSTRIES |
| title_full | COOPERATIVE R&D WITH DIFFERENTIATED PRODUCTS IN VERTICALLY RELATED INDUSTRIES |
| title_fullStr | COOPERATIVE R&D WITH DIFFERENTIATED PRODUCTS IN VERTICALLY RELATED INDUSTRIES |
| title_full_unstemmed | COOPERATIVE R&D WITH DIFFERENTIATED PRODUCTS IN VERTICALLY RELATED INDUSTRIES |
| title_short | COOPERATIVE R&D WITH DIFFERENTIATED PRODUCTS IN VERTICALLY RELATED INDUSTRIES |
| title_sort | cooperative r d with differentiated products in vertically related industries |
| topic | vertical spillovers horizontal spillovers product differentiation R&D cooperation |
| url | http://er.ef.untz.ba/index.php/er/article/view/66 |
| work_keys_str_mv | AT parisapourkarimi cooperativerdwithdifferentiatedproductsinverticallyrelatedindustries AT gamalatallah cooperativerdwithdifferentiatedproductsinverticallyrelatedindustries |