Volume 8, No. 1, April 2009


A Three-Period Analysis of R&D Spillovers in the Presence
of an Industry Life Cycle Pattern
Gamal Atallah
Department of Economics, University of Ottawa, Canada
This paper introduces the time dimension into the precompetitive R&D model, where both demand and spillovers vary over time. The effect of cooperation on R&D depends on a weighted function of spillovers, with the weights being a function of demand levels. The bulk of the incentives for innovation come from the growth phase of the industry.
Key words: R&D cooperation; R&D spillovers; industry growth; product life cycle; technology diffusion
JEL classification: L13; O33