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| Author: | Grünfeld, L. A. |
| Title: | Meet me halfway but don't rush: absorptive capacity and strategic R&D investment revisited |
| Journal: | International Journal of Industrial Organization
2003 : OCT, VOL. 21:8, p. 1091-1109 |
| Index terms: | R&D Investments |
| Freeterms: | R&D spillovers Absorptive capacity |
| Language: | eng |
| Abstract: | The authors analyse how R&D investment decisions are affected by R&D spillovers between firms, taking into consideration that more R&D investment improves the ability to learn from competing firms - the so-called absorptive capacity effect of R&D. They show that absorptive capacity effects of own R&D do not necessarily drive up the incentive to invest in R&D. This only happens when the market size is small or the absorptive capacity effect is weak. |
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