Empirical evidence strongly suggests that R&D increases a firm’s "absorptive capacity" (its ability to absorb spillovers from other firms) as well as contributing directly to profitability. We explore the theoretical ...
A quality ladder model is used to test for Marshallian externalities in innovation. The model predicts that, in the absence of spillovers, the geographical distribution of research should be the same as that of production. ...
A quality ladder model is used to test for Marshallian externalities in innovation. The model predicts that, in the absence of spillovers, the geographical distribution of research should be random.
Pavelin, Stephen(University College Dublin. School of Economics, 2006-12)
This paper presents a model of the interaction between two rival firms based in the same country. Each firm must decide how to serve a foreign market (export or foreign production) and how much to invest in a corporate-wide ...