Taipei, Taiwan: Department of Industrial Economics, Tamkang University
This paper investigates the effects of uncertainties over R&D policy and/or market demand on R&D levels in a duopoly with R&D rivalry and technological spillovers from a more advanced foreign firm. A "domestic" and a "foreign" firm compete on R&D and output. First, we find, with the positive slope of the R&D reaction functions, that firms' R&D decreases due to increased uncertainty over an R&D subsidy policy. Second, increased uncertainty over market demand encourages
R&D if firms' R&D are strategic complements.
2009貿易、產業與區域經濟國際學術研討會論文集=Proceedings of 2009 International Conference on Trade, Industrial and Regional Economics，18頁