Knowledge spillover and information sharing : the case of uncertain R&D

Banerjee, Shantanu and Mukherjee, Arijit (2007) Knowledge spillover and information sharing : the case of uncertain R&D. The Indian Economic Journal, 55 (1). pp. 157-163. ISSN 0019-4662

Abstract

We show the effects of “knowledge spillover at the R&D stage” and “no knowledge spillover at the R&D stage but information sharing after R&D” on the equilibrium R&D investments. For large knowledge spillover, the equilibrium R&D investments are higher under no knowledge spillover but information sharing compared to knowledge spillover at the R&D stage. However, these two regimes can generate the same outcome for small knowledge spillover.