Quality-price competition and product R&D investment policies in developing and developed Countries

Yasunori Ishii

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    9 Citations (Scopus)


    This study establishes a third-country trade model where firms from developing and developed countries invest into product R&D under their governments' subsidisation policies to analyse firms' quality-price choices and governments' optimal product R&D investment policies. We show that a rise in the developing (developed) country's product R&D subsidy makes firms' quality-price competition more (less) intense and that the governments' optimal product R&D policies, depending on the features of their quality and demand functions, can both be subsidies even under Bertrand price competition, contrary to the findings of previous studies.

    Original languageEnglish
    Pages (from-to)197-206
    Number of pages10
    JournalEconomic Record
    Issue number289
    Publication statusPublished - 2014


    ASJC Scopus subject areas

    • Economics and Econometrics

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