Public R&D as a standard-setting device

• Autores: Achim Hecker, Tobias Kretschmer
• Localización: Industry and Innovation, ISSN-e 1469-8390, Vol. 21, Nº. 7-8, 2014, págs. 599-615
• Idioma: inglés
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• Resumen

  • We propose a simple two-firm model with complementarities and imperfect knowledge about the optimal technology. Firms receive two signals about the technology, a public and a private one. We show that with complementarities public signals can serve as a coordination device between firms, even if the private signal is more precise. Our results point to an important function of standard-setting organizations and public R&D: providing a focal point for firms that might not coordinate otherwise.