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Journal Article

On Information Sharing and Incentives in R&D

Sergei Severinov
The RAND Journal of Economics
Vol. 32, No. 3 (Autumn, 2001), pp. 542-564
Published by: Wiley on behalf of RAND Corporation
Stable URL: http://www.jstor.org/stable/2696368
Page Count: 23
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On Information Sharing and Incentives in R
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Abstract

I investigate the issue of endogenous spillover of R&D information across firms through information exchange between their employees. Although the firms typically cannot observe and restrict communication between their employees in a direct way, they can regulate information flows through the incentive schemes offered to the employees. This article focuses on two issues: characterization of the optimal incentive schemes, and the link between the nature of the firms' interaction in the product market and the intensity of information exchange between the employees.

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