Using a game theoretical model on firms’ simultaneous investments in product and process innovation, we deduct and empirically test hypotheses on the optimal R&D portfolio, investment, performance, and dynamic efficiency of R&D for acquisitions and in independently competing firms. We use...

This paper develops a model of firm dynamics in global competition and experimentally analyzes multinational growth strategies and optimal coordination of innovative activities. It shows that growth and innovation strategies of operatively engaged headquarters (business or corporate) with a...