English, Article, Journal or magazine article edition: Firms' Location and R&D Cooperation in an Oligopoly with Spillovers Isabel Mota; António Brandão

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Bookmark: http://trove.nla.gov.au/version/182189
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Firms' Location and R&​D Cooperation in an Oligopoly with Spillovers
Author
  • Isabel Mota
  • António Brandão
Physical Description
  • preprint
Notes
  • This paper aims at explaining if firms's decision about location revises when firms cooperate or compete in R&​D. For that purpose, it is proposed a three-stage game amongst three firms where each firm decides about location, R&​D and output. Firms' decision about location determines a R&​D spillover, which is inversely related to the distance between firms. R&​D output is assumed to be cost-reducing and exhibit diminishing returns. Cooperation is only allowed in the R&​D stage. Our results allow us to conclude that there is a positive relationship between R&​D output equilibrium and the distance between firms when firms acts independently. When firms cooperate in R&​D, the R&​D output for a cooperating firm increases with the degree of information sharing between them, as well as with a reduction of the distance between cooperating firms. Firms' decision about location is also affected by R&​D activities: if R&​D activities run independently, the clustering of firms only occurs for a convex spillover function; if R&​D activities run cooperatively, clustering is always observed if there is an increased information sharing between firms.
  • Location, R&​D cooperation, R&​D spillovers
  • RePEc:por:cetedp:0404
Language
  • English
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