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competition also the influence of spillovers on R&D-cooperation increases. However, competition seems to induce firms to search … spillover effects may even hinder firms from cooperating in R&D when there is intensive competition on the research stage …
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In a general setting with uncertainty and spillovers in R&D activity, we consider the incentive to cooperate among firms at any or all of the following three stages. Firms can jointly agree on the level of R&D expenditures, they can set up joint research facilities, and/or they can engage in an...
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competition. The model is built on the assumption of a product market and has not yet been empirically tested on service …&D. Finally, as competition increases, small firms tend to seek more strategic alliances with competitors while large firms tend … capacity to handle innovation projects internally and as competition increases, so does the payoff of an edge to competitors …
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