Research and Development- Business Strategies towards the Creation Absorption and Dissemination of New Technologies

In high-tech industries Research and Development (R&D) is the most importantorigin of competitive advantage. The underlying investment decisions arenotably complex. First high-tech industries are highly concentrated such thatmutual observation and reactions among competitors need to be taken intoaccount. Secondly the knowledge created through R&D may not only benefitits originator but may spill over to competitors. This book offers novel analysesof four questions. Should competitors follow similar research paths as tomaximise knowledge flows or to the contrary minimize spillovers throughspecific paths? What is the optimal mix of R&D aimed to create original innovationand R&D targeted to absorb others' innovations? Under what circumstancescan incumbents use their ability to absorb external R&D as tothreaten innovative entrants? Should competing firms share knowledge witha common supplier who may diffuse it? Basic game theory is applied and thebook addresses researchers advanced students policy-makers and R&D strategists.