In:
International Economic Review, Wiley, Vol. 59, No. 4 ( 2018-11), p. 1969-1993
Abstract:
We present a model where firms conduct R & D in both a safe and a risky direction. As patentability standards rise, an innovation in the risky direction is less likely to receive a patent, which decreases the static incentive for new entrants to conduct risky R & D but can increase their dynamic incentive. These, together with a strategic substitution and a market structure effect, result in an inverted‐U shape in the risky direction but a U shape in the safe direction for the relationship between R & D intensity and patentability standards. R & D is biased toward (against) the risky direction under lower (higher) standards.
Type of Medium:
Online Resource
ISSN:
0020-6598
,
1468-2354
DOI:
10.1111/iere.2018.59.issue-4
Language:
English
Publisher:
Wiley
Publication Date:
2018
detail.hit.zdb_id:
209871-4
detail.hit.zdb_id:
1483297-5