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| Author: | Ceccagnoli, M. |
| Title: | Firm heterogeneity, imitation, and the incentives for cost reducing R&D effort |
| Journal: | Journal of Industrial Economics
2004 : MAR, VOL. 53:1, p. 83-100 |
| Index terms: | Cost reduction Industrial economics R&D |
| Language: | eng |
| Abstract: | This article develops and tests a model of strategic R&D investments where innovating and non-innovating companies compete on the basis of their ability to reduce costs and imitate rivals. The writer finds that a larger proportion of non-innovating rivals stimulates cost-reducing investments and diminishes the disincentive effect of imitation by innovators on company level R&D. |
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