[1] Luo Jianli, Zhong Weijun,. Absorptive capacity and R&D strategy of labor-managed firms [J]. Journal of Southeast University (English Edition), 2009, 25 (3): 413-418. [doi:10.3969/j.issn.1003-7985.2009.03.027]

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Absorptive capacity and R&D strategy of labor-managed firms()

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Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:

25

Issue:

2009 3

Page:

413-418

Research Field:

Economy and Management

Publishing date:

2009-09-30

Info

Title:

Absorptive capacity and R&D strategy of labor-managed firms

Author(s):

Luo Jianli¹;  2;  Zhong Weijun¹

¹School of Economics and Management, Southeast University, Nanjing 210096, China
² School of Business, Wenzhou University, Wenzhou 325000, China

Keywords:

absorptive capacity;  labor-managed firm;  R&;  D;  strategic interaction

PACS:

F270

DOI:

10.3969/j.issn.1003-7985.2009.03.027

Abstract:

Taking absorptive capacity effects on research spillovers into consideration, this paper focuses on the R& D investment decisions and the output decisions of labor-managed firms. Based on the general model of the cost-reducing R& D, the strategic interactions of output and R& D investment between labor-managed firms in a duopoly are analyzed. Moreover, the impact of absorptive capacity effects on optimal output in the production stage is discussed. In the R& D stage, the impacts of absorptive capacity effects on the equilibrium R& D investment in cooperative and non-cooperative R& D are analyzed. Finally, the R& D strategy of labor-managed firms is compared with the behavior of profit-maximizing firms. The results show that equilibrium R& D investment is always higher than that in the exogenous spillover rate, which is similar to the behavior of the profit-maximizing firms. However, unlike the profit-maximizing firms, the impact of the absorptive capacity that affects the relationship between the optimal output and its own(rival’s)R& D is shown to be dependent upon a return-to-scale of the production.

References:

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[9] d’Aspremont C, Jacquemin A. Cooperative and noncooperative R& D in duopoly with spillovers [J]. The American Economic Review, 1988, 78(5): 1133-1137.
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Memo

Memo:

Biographies: Luo Jianli(1980—), male, graduate; Zhong Weijun(corresponding author), male, doctor, professor, zhong.wj@public1.ptt.js.cn.
Foundation items: The National Natural Science Foundation of China(No.70671024), Annual Research Results in Zhejiang Federation of Humanities and Social Sciences Circles(No.08N40).
Citation: Luo Jianli, Zhong Weijun. Absorptive capacity and R& D strategy of labor-managed firms[J]. Journal of Southeast University(English Edition), 2009, 25(3): 413-418.

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