Dynamic R&D competition and cooperation: A differential game approach

Ma Rufei, Wang Jia

Science Research Management ›› 2011, Vol. 32 ›› Issue (5) : 36-42.

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PDF(969 KB)
Science Research Management ›› 2011, Vol. 32 ›› Issue (5) : 36-42.

Dynamic R&D competition and cooperation: A differential game approach

  • Ma Rufei1, Wang Jia2
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Abstract

A duopolistic differential game model which two firms conduct R&D activity with technology spillover and technology update is considered. Each firm in the model competes or cooperates with each other in a R&D stage but compete in an output stage. How technology spillover and technology update affect firm's R&D strategy is studied by comparing transient profit between R&D competition with R&D cooperation, and how R&D strategy of firms changeing over time is discussed.

Key words

R&D strategy / differential game / technology spillover / technology update

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Ma Rufei, Wang Jia. Dynamic R&D competition and cooperation: A differential game approach[J]. Science Research Management. 2011, 32(5): 36-42

References

[1] Antje Baerenss, Cooperation versus competition: optimal strategies for process and product innovation , University of Colorado, 2000, 1-104. [2] Bruno Cassiman, Maria Chiara Di Guardoand, Giovanni Valentini. Organizing R&D Projects to Profit From Innovation: Insights From Co-opetition[J]. Long Range Planning, 2009 (42), 216-233. [3] d’Aspremont, C., Jacquemin, A., Cooperative and noncooperative R&D in duopoly with spillovers[J]. American Economic Review, 1988 (78), 1133-1137. [4] Amir R, Evstigneev I, Wooders J. Noncooperative versus cooperative R&D with endogenous spillovers rates[J]. Games and Economic Behavior, 2003,(42),183-207. [5] Gamal Atallah, R&D cooperation with asymmetric spillovers [J], Canadian Journal of Economics, 2005(38), 919-936. [6] Cellini,R., Lambertini,L., Dynamic R&D with spillovers: Competition vs cooperation [J], Journal of Economic Dynamics & Control, 2009(33), 568-582. [7] Kamien, M.I., Muller, E., Zang,I., Cooperative joint ventures and R&D cartels[J]. American Economic Review, 1992 (82), 1293-1306.
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