Hammerschmidt, Anna. 2009. No Pain, no Gain: An R&D Model with Endogenous Absorptive Capacity. Journal of Institutional and Theoretical Economics (Zeitschrift für die gesamte Staatswissenschaft) 165 (3): 418-437.

RIS

@ARTICLE{Hammerschmidt2009,
title = {No Pain, no Gain: An R&D Model with Endogenous Absorptive Capacity},
author = {Anna Hammerschmidt},
year = {2009},
url = {http://www.ingentaconnect.com/content/mohr/jite/2009/00000165/00000003/art00004},
volume = {165},
number = {3},
language = {EN},
pages = {418-437},
journal = {Journal of Institutional and Theoretical Economics (JITE)},
abstract = {I investigate how the introduction of the absorptive capacity hypothesis changes the results of the strategic investment games with exogenous spillover. As a novelty, this paper distinguishes between two different components of R&D: "absorptive R&D" and "inventive R&D". It is demonstrated that a new effect appears: The "absorptive capacity effect" now counteracts the "free-rider effect" of the traditional models. The findings show that firms will invest more in R&D to strengthen absorptive capacity when the spillover parameter is higher. To learn from its competitor, a firm needs to develop its absorptive capacity: no pain, no gain!},
}