The road not taken: Competition and the R&D portfolio

Arbeitspapier

Contrary to most of the literature, which focuses only on the level of investment in innovation, this paper examines both the variety of research projects undertaken and the amount of duplication of research. A characterization of the equilibrium market portfolio of R&D projects and the socially optimal portfolio is provided. It is shown that a merger decreases the variety of developed projects and decreases the amount of duplication of research. An increase in the intensity of competition among firms leads to an increase in the variety of developed projects and a decrease in the amount of duplication of research.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 127 [rev.]

Classification and Topics

• Classification: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Firm Organization and Market Structure ; Innovation and Invention: Processes and Incentives
• Subject: Innovation ; competition ; R&D portfolio ; market structure ; Innovation ; Wettbewerb ; Marktstruktur ; Portfolio-Management

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Letina, Igor
• Event: Veröffentlichung
• (who): University of Zurich, Department of Economics
• (where): Zurich
• (when): 2014

Further information

• DOI: doi:10.5167/uzh-79069
• Handle: http://hdl.handle.net/10419/111190
• Last update: 10.03.2025, 11:45 AM CET