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competition and aggregate innovation. We consider a two-stage game with a deterministic Research and Development (R&D) process … outputs simultaneously. We show that the inverted-U relationship between competition and aggregate innovation occurs if … competition is affected by the number of technology followers. However, the presence of more technology leaders decreases …
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We show the effects of entry of a foreign firm on domestic welfare in the presence of licensing. If the entrant is technologically inferior to the incumbent, foreign entry increases domestic welfare for intermediate (sufficiently large) technological differences between the firms under licensing...
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