Dawid, Herbert; Hellmann, Tim - 2016
stage game, firms first decide on long-term R&D investment, then form research clusters according to the unanimity game … introduced in Bloch(1995), and finally compete in quantities. For some range of investment costs, equilibria with no-investment … co-exist with equilibria where a large fraction of firms invest in R&D. Because of the effects of R&D investment on …