Quotation 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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Publication's profile

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

Associations

People
Hammerschmidt, Anna (Details)
Organization
Department of Economics (Kubin) (Details)
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