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R&D investments under endogenous cluster formation.

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Title: R&D investments under endogenous cluster formation.
Authors: Dawid, Herbert1 (AUTHOR) hdawid@wiwi.uni-bielefeld.de, Hellmann, Tim1,2 (AUTHOR) t.hellmann@soton.ac.uk
Source: Journal of Economic Behavior & Organization. Jun2020, Vol. 174, p253-283. 31p.
Subjects: Investments, Desire, Equilibrium, Business enterprises, Oligopolies
Abstract: We provide an innovative theory-based explanation for the positive relationship between firms' R&D intensity and their degree of R&D cooperation. We show that, when oligopolistic firms decide on long-term R&D investment before forming research clusters among competitors, investment incentives are increased by the desire to become a member of an attractive cluster. This can result in over-investment compared to the welfare optimum and compared to a scenario where research clusters are ex-ante fixed. Thereby, as a theoretical contribution, we fully characterize the equilibria of the unanimity game on cluster formation with heterogeneous firms. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Economic Behavior & Organization is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Engineering Source
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Header DbId: egs
DbLabel: Engineering Source
An: 143858712
AccessLevel: 6
PubType: Academic Journal
PubTypeId: academicJournal
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  Data: R&D investments under endogenous cluster formation.
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  Data: <searchLink fieldCode="AR" term="%22Dawid%2C+Herbert%22">Dawid, Herbert</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> hdawid@wiwi.uni-bielefeld.de</i><br /><searchLink fieldCode="AR" term="%22Hellmann%2C+Tim%22">Hellmann, Tim</searchLink><relatesTo>1,2</relatesTo> (AUTHOR)<i> t.hellmann@soton.ac.uk</i>
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Economic+Behavior+%26+Organization%22">Journal of Economic Behavior & Organization</searchLink>. Jun2020, Vol. 174, p253-283. 31p.
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  Data: <searchLink fieldCode="DE" term="%22Investments%22">Investments</searchLink><br /><searchLink fieldCode="DE" term="%22Desire%22">Desire</searchLink><br /><searchLink fieldCode="DE" term="%22Equilibrium%22">Equilibrium</searchLink><br /><searchLink fieldCode="DE" term="%22Business+enterprises%22">Business enterprises</searchLink><br /><searchLink fieldCode="DE" term="%22Oligopolies%22">Oligopolies</searchLink>
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  Label: Abstract
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  Data: We provide an innovative theory-based explanation for the positive relationship between firms' R&D intensity and their degree of R&D cooperation. We show that, when oligopolistic firms decide on long-term R&D investment before forming research clusters among competitors, investment incentives are increased by the desire to become a member of an attractive cluster. This can result in over-investment compared to the welfare optimum and compared to a scenario where research clusters are ex-ante fixed. Thereby, as a theoretical contribution, we fully characterize the equilibria of the unanimity game on cluster formation with heterogeneous firms. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Journal of Economic Behavior & Organization is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
  BibEntity:
    Identifiers:
      – Type: doi
        Value: 10.1016/j.jebo.2020.03.039
    Languages:
      – Code: eng
        Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 31
        StartPage: 253
    Subjects:
      – SubjectFull: Investments
        Type: general
      – SubjectFull: Desire
        Type: general
      – SubjectFull: Equilibrium
        Type: general
      – SubjectFull: Business enterprises
        Type: general
      – SubjectFull: Oligopolies
        Type: general
    Titles:
      – TitleFull: R&D investments under endogenous cluster formation.
        Type: main
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      – PersonEntity:
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            NameFull: Dawid, Herbert
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            NameFull: Hellmann, Tim
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          Dates:
            – D: 01
              M: 06
              Text: Jun2020
              Type: published
              Y: 2020
          Identifiers:
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              Value: 174
          Titles:
            – TitleFull: Journal of Economic Behavior & Organization
              Type: main
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