Femminis, Gianluca; Martini, Gianmaria - Dipartimenti e Istituti di Scienze Economiche, … - 2009
We present a dynamic duopoly model of technical innovation where R&D costs decrease exogenously with time, and inter-firm knowledge spillover lowers the second comer's R&D cost. The spillover effect only becomes available after a disclosure lag. These features allow us to identify a new type of...