This paper tests whether upstream R&D cooperation leads to downstream collusion. We consider an oligopolistic setting where firms enter in research joint ventures (RJVs) to lower production costs or coordinate on collusion in the product market. We show that a sufficient condition for...

This discussion paper resulted in the article <I>Journal of Economic Education</I> (2008), 39(4), 357-373.<P> This paper describes a classroom experiment that illustrates the research and development investment incentives facing firms when technological spillovers are present. The game involves two stages...</p></i>

Despite the pervasive phenomenon of scale economies the majority of firms hasalways been small firms. The emergence of small firms as a means of economic development on both sides of the Atlantic has been one of the major new topics of economic policy since the 1980s. This has drawn renewed...

A large literature has emerged focusing on the post-entry performance of firms and, in particular, on thelinks between firm growth, survival, size and age. While these studies have resulted in findings that aresufficiently consistent as to constitute Stylized Facts, virtually all of these...

The purpose of this paper is to introduce a series of articles on the linksbetween innovation, the evolution of industry and employment. These relationsprovide the building blocks of a new industrial policy. The articles areincluded in Innovation, Industry Evolution and Employment published by...

The purpose of this paper is to suggest that a fundamental shift in Europe, along with the other OECD countries, is taking place. This shift is from the managed economy to the entrepreneurial economy. While politicians and policy makers have made a plea for guidance in the era of...

The survey findings indicate the existence of gap between theory and practice of capital budgeting. Standard appraisal methods have shown a wider project value discrepancy, which is beyond and above the contingency limit. In addition, the research has found the growing trend in the use of value...

One of the debates in the capital budgeting model selection is between the free cash flow and DCF methods. In this paper an attempt is made to compare SVA against NPV model based on Monte Carlo simulations. Accordingly, NPV is found less sensitive to value driver variations and has got higher...

How does risk or uncertainty in the productivity of research affect the growth rate of the economy? To answer this question, a model of endogenous technological change is used where sustained growth stems from intentional investments in R&D from profit-maximizing firms. The uncertainty arises...

The strategic choices regarding innovation and R&D policy in Portugal have, over the last two decades, produced various positive benefits, in which particularly the regions of Lisbon and Algarve have taken the lead. These are the only parts of the country that converge towards the European...