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    Demand Uncertainty, R&D Leadership and Research Joint Ventures


    O'Sullivan, Paul (2014) Demand Uncertainty, R&D Leadership and Research Joint Ventures. Maynooth University. (Unpublished)

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    Abstract

    This paper analyses the desirability of RJV formation when firms may choose their R&D investment before or after any demand uncertainty is resolved. If a R&D leader accommodates a follower, multiple Nash equilibria are possible under both R&D competition and RJV formation. If a R&D leader prevents activity by the follower, this is only expected to be profitable at very low spillover and unit R&D cost levels. Whether R&D leadership when competing in R&D is expected to be more profitable than waiting and forming a RJV will depend on unit R&D costs and spillovers. Maximising expected welfare may require an active role for government.

    Item Type: Other
    Additional Information: Thanks to Dermot Leahy and J. Peter Neary for helpful comments and suggestions and to seminar participants at NUI Maynooth and the Irish Economic Association Annual Conference. Any remaining errors are solely those of the author.
    Keywords: Demand Uncertainty; R&D Leadership; Research Joint Venturs; JEL Classification: D21, D81, L13;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 5335
    Depositing User: Ms Sandra Doherty
    Date Deposited: 02 Sep 2014 14:17
    Publisher: Maynooth University
    URI:

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