R&D with spillovers: Monopoly versus noncooperative and cooperative duopoly.

This paper compares industry profit and R&D propensity for a duopoly conducting either noncooperative or cooperative R&D and amonopoly, using two different basic models of strategic R&D. One postulatesspillovers in R&D inputs and predicts that equilibrium jointprofit and R&D levels are always larger under monopoly. The otherpostulates spillovers in R&D outputs and sometimes predicts that jointprofit and R&D levels are larger under either of the alternative scenarios.In addition, unlike input spillovers, spillovers in R&D outputssometimes exert a positive effect on both effective and private noncooperativeR&D levels.