Black Queen Games: how firms choose R&D investment norms

Investing in R&D in the past few decades has become a routine process for both large and medium-sized technology companies. Moreover, R&D often serves the main weapon in the competition between firms. In this article, we consider two simple models for selecting the level of investment in R&D by companies. Then, on the example of leading companies from the pharmaceutical industry and automotive industry, the theoretical predictions are tested on empirical data. It turned out that on average firms from the same industry choose close norms of investment in R&D. At the same time, as a rule, firms maintain the level of R&D-intensity over time or even increase it

Keywords: R&D investment, R&D intensity, innovation development, R&D, corporate R&D investment


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