Should R&amp;D risk always be preferable?

Zhāng, Yànfāng; Mei, Shue; Wang, Zhong

doi:10.1016/j.orl.2012.12.010

Cited by 14 publications

(14 citation statements)

References 9 publications

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“…The other line of the research assumes that the R&D risk is denoted by the variance in R&D outcomes and investigates the firm's optimal choice of R&D risk. Tishler (2008), Zhang et al (2013) and Xing (2014) have examined the strategic R&D risk choice among R&D programmes with different degrees of risk when firms compete in R&D.…”

Section: Bulletin Of Economic Researchmentioning

confidence: 99%

“…When a firm undertakes R&D programmes, the outcomes of which are generally uncertain, it must evaluate the R&D risk. As in the research of Dasgupta andStiglitz (1980), Cabral (2003), Tishler (2008), Zhang et al (2013) and Xing (2014), we assume that the R&D programmes have identical expected outcomes but different risks. We focus only on firms' optimal choices of R&D risk.…”

Section: Randd Competitionmentioning

confidence: 99%

“…Tishler (), Zhang et al . () and Xing () have examined the strategic R&D risk choice among R&D programmes with different degrees of risk when firms compete in R&D.…”

Section: Introductionmentioning

confidence: 99%

“…Tishler (), Zhang et al . () and Xing () also study the strategic choice regarding the variances of R&D outcomes. However, they do not take into account cooperative R&D and the impact of technology spillovers.…”

mentioning

confidence: 99%

“…Tishler (2008),Zhang et al (2013) andXing (2014) also study the strategic choice regarding the variances of R&D outcomes. However, they do not take into account cooperative R&D and the impact of technology spillovers.C 2016 Board of Trustees of the Bulletin of Economic Research and John Wiley & Sons Ltd…”

mentioning

confidence: 99%

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THE OPTIMAL RISK CHOICE OF COOPERATIVE AND NONCOOPERATIVE R&D IN DUOPOLY WITH SPILLOVERS

Xing

2016

Bulletin of Econ Res

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This study examines the R&D risk choice in a duopoly market with technology spill overs. The firms conduct R&D programmes with different degrees of risk but an identical expected outcome and they compete or cooperate in R&D. Findings indicate that, in equilibrium, the R&D risk level decreases in the spill over rate under noncooperative R&D, while it may increase under cooperative R&D. Firms are more likely to engage in higher R&D risks under cooperative R&D than they are under non‐cooperative R&D. Moreover, the equilibrium R&D risk level both under competition and cooperation R&D is always too low from the perspective of social welfare, and the extent of this inefficiency increases with the spill over rate if the size of the spill over is large, but the opposite may occur if the size of the spill over is small.

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Section: Bulletin Of Economic Researchmentioning

confidence: 99%

Section: Randd Competitionmentioning

confidence: 99%

“…Tishler (), Zhang et al . () and Xing () have examined the strategic R&D risk choice among R&D programmes with different degrees of risk when firms compete in R&D.…”

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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THE OPTIMAL RISK CHOICE OF COOPERATIVE AND NONCOOPERATIVE R&D IN DUOPOLY WITH SPILLOVERS

Xing

2016

Bulletin of Econ Res

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Competitive analysis of R&D investment with R&D budget constraint and R&D uncertainty

Gao

Wang

2023

Manage Decis Econ

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This paper examines the cost‐reducing research and development (R&D) competition of duopolistic firms with consideration of R&D budget constraint and R&D uncertainty through constructing a game‐theoretic game. We find the R&D success probability decreases each firm's expected profit when this probability remains high because it intensifies R&D competition too much in this scenario. We show each firm suffers from an increase in R&D budget when such budget is moderate due to the intensified R&D competition as well. Furthermore, we reveal output subsidy leads to a higher expected total subsidy cost and a higher expected social welfare than R&D subsidy.

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