Volume 8, No. 1, April 200 9
A Three-Period Analysis of R&D Spillovers in the Presence
of an Industry Life Cycle Pattern


Gamal Atallah*
Department of Economics, University of Ottawa, Canada


Abstract


This paper introduces the time dimension into the precompetitive R&D model, where both demand and spillovers vary over time. The effect of cooperation on R&D depends on a weighted function of spillovers, with the weights being a function of demand levels. The bulk of the incentives for innovation come from the growth phase of the industry.


Key words : R&D cooperation; R&D spillovers; industry growth;

product life cycle; technology diffusion

JEL classification : L13; O33

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