The road not taken: competition and the R&D portfolio.

This article examines the effects of market structure on the variety of research projects undertaken and the amount of duplication of research. A characterization of the equilibrium market portfolio of R&D projects and the socially optimal portfolio is provided. It is shown that a merger decreases t...

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Bibliographic Details
Published in:RAND Journal of Economics (Wiley-Blackwell) Vol. 47; no. 2; pp. 433 - 461
Main Author: Letina, Igor
Format: Article
Published: Wiley-Blackwell Summer2016
Subjects:
Online Access:View this record in EBSCOhost
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        atl: The road not taken: competition and the R&D portfolio.
      aug:
        au: Letina, Igor
        affil: University of Zurich
      su:
        Economic competition
        Research & development
        Portfolio management (Investments)
        Market design & structure (Economics)
        Innovations in business
      sug:
        subj:
          Economic competition
          Portfolio Management
          Research and Development in Biotechnology
          Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
          Research & development
          Portfolio management (Investments)
          Market design & structure (Economics)
          Innovations in business
      ab: This article examines the effects of market structure on the variety of research projects undertaken and the amount of duplication of research. A characterization of the equilibrium market portfolio of R&D projects and the socially optimal portfolio is provided. It is shown that a merger decreases the variety of developed projects and decreases the amount of duplication of research. An increase in the intensity of competition among firms leads to an increase in the variety of developed projects and a decrease in the amount of duplication of research.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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