International Journal of Business and Economics Volume 8, No. 1 April​, 2009

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.

Keywords：R&D cooperation, R&D spillovers, industry growth, product life cycle, technology diffusion.

JEL Classifications：L13, O33.

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