Patents in new technologies

Abstract

We present a new R&D investment function in a Cournot competition model inspired in the logistic equation. We do a full characterization of the associated game and study the short- and long-term economical effects derived from using this new R&D investment function. In particular, we find the existence of regions with multiple Nash investment equilibria. For low production costs, that can correspond to the production of old technologies, the long-term economical effects are not very sensitive to small changes in the efficiency of the R&D programmes neither to small changes in the market structure. However, for high production costs, that can correspond to the production of new technologies, the long-term economical effects are very sensitive to small changes in the efficiency of the R&D programmes and also to small changes in the market structure.