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Article: Reports from A. Hammerschmidt and co-researchers add new data to research in institutional and theoretical economics.(Report)
- Article from:
- Economics Week
- Article date:
- November 20, 2009
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"I investigate how the introduction of the absorptive-capacity hypothesis changes the results of strategic investment games with exogenous spillover. As a novelty, this paper distinguishes between two different components of R&D: absorptive R&D and inventive R&D," scientists writing in the Journal of Institutional and Theoretical Economics - Zeitschrift Fur Die Gesamte Staatswissenschaft report.
"It is demonstrated that a new effect appears: The absorptive-capacity effect now counteracts the free-rider effect of the traditional models. The findings show that firms will invest more in R&D to strengthen absorptive capacity when the spillover parameter is higher," ...