Process and Product R&D by a Multiproduct Monopolist: A Reply to Lin
نویسنده
چکیده
With reference to Lambertini (2003), Lin (2004) correctly points out that, if R&D efforts for process innovation are endogenous, then process and product R&D are strategic complements. Then, he also proves that the opposite holds when spillovers are nil. Objecting to Lin’s second claim, I show that monopoly profits are everywhere increasing in the extent of information sharing within the firm. Consequently, the full internalisation of spillovers restores the complementarity between process R&D and product proliferation. JEL Classification: L12, O31
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تاریخ انتشار 2004