This paper describes R&D competition between a managerial firm and an entrepreneurial one, in a Cournot market. It is shown that a manager interested in output expansion exerts higher R&D efforts, yielding productive efficiency as compared to the performance of a strictly profit-seeking firm....

We reassess the respective gains from R&D cooperation and competition in a Cournot Duopoly with homogeneous goods, where firms adopt a concave cost-reducing R&D technology. Contrary to the previous literature on the same topic, our main results are that (i) no corner solutions emerge and (ii)...