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| Author: | Brocas, I. |
| Title: | Vertical integration and incentives to innovate |
| Journal: | International Journal of Industrial Organization
2003 : APR, VOL. 21:4, p. 457-488 |
| Index terms: | Vertical integration Company growth R&D Incentives |
| Freeterms: | Switching costs |
| Language: | eng |
| Abstract: | In this paper, two upstream innovators invest to improve process innovations used by two downstream producers. At the beginning of the game, each innovator licenses its technology to one producer and they can agree to integrate vertically. Investment takes place and successful innovators choose their licenses. |
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