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defensive publications in an r&d race.

Talia Bar1

  • 1Department of Economics Cornell University Ithaca, NY 14853 talia.bar@cornell.edu.

Journal of Economics & Management Strategy
|April 28, 2020
PubMed
Summary

Firms strategically publish research findings in R&D races to catch up when behind. This publication strategy prolongs the race but can benefit the lagging firm by resetting the competitive landscape.

Area of Science:

  • Economics
  • Innovation Studies
  • Game Theory

Background:

  • Competitive dynamics in research and development (R&D) races are complex.
  • The strategic release of research findings significantly impacts patentability and market positioning.
  • Understanding the incentives for publication in a dynamic R&D environment is crucial.

Purpose of the Study:

  • To analyze a multistage dynamic R&D race with strategic publication of research findings.
  • To investigate how publication decisions affect the R&D race's progression and outcomes.
  • To determine the factors influencing a firm's decision to publish research.

Main Methods:

  • Game-theoretic modeling of a multistage R&D race.
  • Analysis of strategic publication as a mechanism to alter the competitive landscape.

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  • Examination of firm-specific factors (patience, success probability) and market asymmetries.

    • Main Results:

    • Firms publish when trailing and a rival is near completion, which hinders both but aids the follower.
    • Increased firm patience and higher success probability correlate with a greater likelihood of publication.
    • Asymmetries create additional publication incentives, such as protecting existing profits or enhancing a leading firm's win probability.

    Conclusions:

    • Strategic publication in R&D races can be a tool for lagging firms to regain competitiveness.
    • Publication decisions are influenced by a firm's strategic patience, success outlook, and market position.
    • In joint R&D and publication decisions, research output can substitute for direct investment.