Networks Webinar - Michael Konig
The Janeway Institute hosts the Networks Webinar Series which is organised by George Charlson, Sanjeev Goyal, Matt Elliott and Akhil Vohra. For the talk on Friday 8th October 2021, 2:00pm - 3:00pm, Michael Konig (VU Amsterdam) will give a talk on "Endogenous Technology Spillovers in Dynamic R&D Networks"
Title:
Endogenous Technology Spillovers in Dynamic R&D Networks
Abstract:
We introduce a stochastic R&D network formation model where firms choose both R&D efforts and their collaboration partners. Neighbors in the network benefit from each other’s effort levels through local technology spillovers, and there exists a global competition effect reflecting a strategic substitutability in efforts. We provide a complete equilibrium characterization in the form of a Gibbs measure, and show that the model is consistent with empirically observed R&D networks. We then use our equilibrium characterization to show that the model can be conveniently estimated even for large networks. The policy relevance is demonstrated with the analysis of subsidies to R&D collaboration costs.