R&D Portfolio and Market Structure
Bibliographic Data
| ID | 9715202 |
|---|---|
| Authors | Illoong Kwon (0000-0002-4888-4058, State University of New York at Albany, corresponding author) |
| Year | 2010 |
| Volume | 120 |
| Issue | 543 |
| Pages | 313-323 |
| Publication date | 2010-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2009.02294.x |
| OpenAlex | W2003654786 |
| Language | EN |
| Citations received | 1 |
| References cited | 12 |
This article analyses how firms allocate their resources when they compete for multiple patents in heterogeneous research projects simultaneously. A simple model shows that firms' resource allocation is biased away from risky and basic research, even when imitation is not possible and firms are fully rational. Therefore a market may lack major innovations despite large aggregate research expenditure and strong patent protection. This article also shows that as a market becomes more competitive, firms invest relatively less in basic research but more in risky research. These results provide a novel explanation for an ambiguous empirical relationship between innovation and market concentration. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009
Business · Economics · Financial economics · Imitation · Industrial organization · Market structure · Microeconomics · Portfolio · Resource (disambiguation · Simple (philosophy · Firm Innovation and Growth · Innovation Policy and RD · Intellectual Property and Patents
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,07 |
| Citation span | 2012 - 2012 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |