Why powerful buyers finance suppliers' R&D

Arbeitspapier

It is a common concern that pricing pressure by powerful buyers discourages suppliers' R&D investments. Employing a simple monopsonist - competitive upstream industry - framework, this paper qualifies this view in two respects. First, the monopsonist has an incentive to subsidize upstream R&D which yields more upstream R&D and higher profits in both industries than the monopsonist's commitment to higher prices. Secondly, in the presence of intra-industry R&D spillovers between upstream firms, the monopsonist has an even stronger incentive to finance upstream R&D. If the monopsonist finances more than fifty percent of suppliers R&D efforts, R&D investments in upstream industry will be higher than in the case of buyer competition.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Schumpeter Discussion Papers ; No. 2008-004

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Innovation and Invention: Processes and Incentives ; Management of Technological Innovation and R&D ; Oligopoly and Other Imperfect Markets ; Firm Objectives, Organization, and Behavior: General
• Thema: Vertical Relationships ; Monopsony ; Buyer Power ; R&D ; Knowledge Spillovers ; Nachfragemacht ; Monopson ; Lieferanten-Kunden-Beziehung ; Industrielle Forschung ; Lieferant ; Wissenstransfer ; Ökonomischer Anreiz ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bönte, Werner ; Wiethaus, Lars
• Ereignis: Veröffentlichung
• (wer): University of Wuppertal, Schumpeter School of Business and Economics
• (wo): Wuppertal
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/68718
• URN: urn:nbn:de:hbz:468-20080514
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ