Mukherjee, Arijit - EconWPA - 2002
This paper examines how the option for licensing affects research and development (R&D) and social welfare. We find … that if cost reduction from R&D is sufficiently small and there is an option of licensing, firms will do non-cooperative R …&D. In absence of licensing, firms will do cooperative R&D for sufficiently small cost reduction from R&D. Whether the option …