Domenico Campisi

R&D competition, absorptive capacity, and market shares

This paper deals with an oligopolistic industry where firms are engaged in cost-reducting R&D activity to maximize their market shares. The existence and uniqueness of a feedback-Nash-optimal R&D strategy for each firm are discussed. Our simulations highlight that variations in spillovers hardly influence the firms R&D investment, if their absorptive capacities to exploit extramural knowledge depend on their R&D efforts. Moreover, extramural knowledge cannot completely replace in-house R&D. However, a high level of public R&D favors the firm with the most restrictive R&D expenditure constraint and/or with the lowest initial R&D stock, provided it invests in R&D.

Capital Usage and Output Growth in Multiregional Multisectoral Models: An Application to the Italian Case

CAMPISI D. And NASTASI A. (1993) Capital usage and output growth in multiregional multisectoral models: an application to the Italian Case, Reg. Studies 27, 13–27. This paper extensively discusses the theoretical and practical difficulties arising in the implementation of dynamic input–output models in a multiregional framework. In particular, since the standard capital accumulation pattern produces implausible results (negative outputs), an economically consistent dynamic formulation requires the abandonment of the restrictive assumption of full employment of capital. The resulting model is applied to the Italian economy within a biregional (north-south) framework. Alternative numerical simulations, based on different assumptions on the sectoral maximum admissible growth rates of productive capacity, are finally used to verify the robustness of the model. CAMPISI D. Et NASTASI A. (1993) Lemploi du capital et la croissance de loutput dans le cadre des modeles multisectoriels multiregionaux: une applicat...

The dynamic behavior of multiregional multisectoral models: A biregional application to the Italian economy

Abstract This paper deals with the dynamics of multiregional systems in which economic growth is strictly dependent on the capital accumulation process and multisectoral multiregional interactions evolve within a general equilibrium context. The input-output approach allows an analysis based on the structural properties of the matrices representing the linkages among the different parts of the multiregional economy. The singularity of the regional matrices of capital input coefficients is realistically imposed, and the forward-in-time projection of the model is made possible by a suitable partition of the system. Moreover, the existence and relative stability of a balanced growth path are discussed under the assumption that each sector in the economy requires, directly or indirectly, either some current flow or some capital input from all the other sectors operating in the same and in the other regions. The model is applied to the Italian economy at 1985 within a biregional framework.

Cost Reduction, Competitive Pressure and Firms' Optimal R&D Strategies in a Duopolistic Industry

This paper deals with a duopolistic industry where firms are engaged in cost-reducing R&D activity in order to maximize their market shares. Firms R&D competition is characterized as a dynamic noncooperative feedback game where the optimal strategies are affected by the extra-industry R&D activity and the degree of intra-industry spillovers. Numerical simulations highlight the importance of the assumptions on the firms absorptive capacity (to exploit external knowledge) in determining the optimal levels of firms R&D investrnents.

Reducing information asymmetries in market entry decisions

A Bayesian belief network is adopted to structure and manage an entry decision problem, where a potential entrant has to evaluate the profitability of a given market, depending on an established firms unknown and unobservable multidimensional type. A multiperiod multisignal model is defined to take account of strategic interaction processes between the incumbent and the potential competitor. Since significant theoretical and computational issues prevent us from finding optimal strategies, a myopic policy is discussed that leads to a reasonable outcome. An application example of the proposed solution procedure is also presented.

Dynamic Noncooperative Firms R&D Strategies in an Oligopolistic Industry

This paper deals with an oligopolistic industry where firms are engaged in R&D activity in order to maximize their market shares. The existence of an optimal R&D strategy for each firm is discussed using dynamic noncooperative game theory. Furthermore, the intertemporal relations among firms R&D investments, the unit costs of their outputs and their market shares are analyzed in connection with the extra-industry R&D activity and the spillover effect.

Firms R&D Investments, Innovation and Market Shares

Technological innovation is one of the major factors in determining the long term performance of firms and economies. Here, this subject is analyzed from the point of view of the relationship between the innovative behaviour of a given firm within an oligopolistic industry and its market share. As a matter of fact, the firm capacity to change is closely connected to the size of its RD Allen 1977; Mowery 1983; Cohen and Levinthal 1989; Campisi and Nastasi 1993). The traditional approach to industrial innovative activity devotes little attention to this absorptive capacity of RD Tirole 1988; Quirmbach 1993).