Dawid, Herbert; Hellmann, Tim - 2016
We study investments in R&D and the formation of R&D clusters of firms which are competitors in the market. In a three … stage game, firms first decide on long-term R&D investment, then form research clusters according to the unanimity game …-investment co-exist with equilibria where a large fraction of firms invest in R&D. Because of the effects of R&D investment on …