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.
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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!
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Status of publication | Published |
---|---|
Affiliation | WU |
Type of publication | Journal article |
Journal | Journal of Institutional and Theoretical Economics (JITE) |
Citation Index | SSCI |
WU Journalrating 2009 | A |
WU-Journal-Rating new | FIN-A, STRAT-B, WH-B |
Language | English |
Title | No Pain, no Gain: An R&D Model with Endogenous Absorptive Capacity |
Volume | 165 |
Number | 3 |
Year | 2009 |
Page from | 418 |
Page to | 437 |
Reviewed? | Y |
URL | http://www.ingentaconnect.com/content/mohr/jite/2009/00000165/00000003/art00004 |