Cooperative and non-cooperative R&D with spillovers under consumer-friendly firms

Given that there is ample evidence that firms have social concerns, in this paper we analyse their influence on firms’ R&D cooperation with spillovers. We find that social concerns encourage firms to invest more in R&D when they do not cooperate than when they do. Moreover, when the social c...

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Detalles Bibliográficos
Autores: Dong, Quan, Bárcena Ruiz, Juan Carlos, Sagasta Elorza, Amagoia
Tipo de recurso: artículo
Fecha de publicación:2021
País:España
Institución:Universidad del País Vasco
Repositorio:Addi. Archivo Digital para la Docencia y la Investigación
OAI Identifier:oai:addi.ehu.eus:10810/76557
Acceso en línea:http://hdl.handle.net/10810/76557
Access Level:acceso abierto
Palabra clave:corporate social responsibility
R&D duopoly
spillovers
Descripción
Sumario:Given that there is ample evidence that firms have social concerns, in this paper we analyse their influence on firms’ R&D cooperation with spillovers. We find that social concerns encourage firms to invest more in R&D when they do not cooperate than when they do. Moreover, when the social concern is great enough firms invest more under non-cooperative R&D independently of the spillover value. We also find that firms may prefer not to cooperate on R&D, which does not happen when they do not care about social concerns. Regarding the preference of the government, cooperative R&D agreements generate greater social welfare than non-cooperative R&D in two cases: if the spillover is high enough and the concern of firms about social issues is low enough, and if firms care enough about social issues. Finally, under non-cooperative R&D firms may invest more than the socially efficient level.