This article summarizes recent theoretical and empirical research on R&D races. Two canonical models of an R&D race are described, and their implications for the investment behaviour of incumbent leaders and potential entrants are discussed.
Empirical studies that attempt to verify or refute the implied patterns of investment are also discussed.
KeywordsR&D races Innovation Invention Patents
- Arrow, K. 1962. Economic welfare and the allocation of resources for invention. In The rate and direction of inventive activity: Economic and social factors. Princeton: Princeton University Press for the NBER.Google Scholar
- Gilbert, R., and D. Newbery. 1982. Pre-emptive patenting and the persistence of monopoly. American Economic Review 72: 514–526.Google Scholar
- Kamien, M., and N. Schwartz. 1974. Patent life and R&D rivalry. American Economic Review 64: 183–187.Google Scholar
- Reinganum, J. 1983. Uncertain innovation and the persistence of monopoly. American Economic Review 73: 741–748.Google Scholar