NONCOOPERATIVE, COOPERATIVE, AND DELEGATIVE R-AND-D

We discuss alternative organizational forms of research and developmen t in a symmetric duopoly framework. Firms play a noncooperative game a t the output stage but can collaborate at the R&D stage. In the absenc e of patent protection, technology licensing that prevents imitative R &D may emerge as an equilibrium outcome. In general, greater probabili ties of ''success'' in R&D rule out noncooperative arrangement at the R&D stage. Delegative R&D, where firms move sequentially, tends to dom inate the cooperative form of R&D.