A Typology of R&D Processes Based on Market Excludability and Information Appropriability 

Xingtan Zhang, University of Colorado Boulder; Andy Wu, Harvard Business School; and Peichun Wang, Microsoft (previously Applied Economics, The Wharton School)

Abstract: We explore the relationship between competition among downstream commercializing firms (e.g. incumbent pharmaceutical firms) and upstream innovative firms (e.g. startup biotechnology firms). We find that in an alliance regime, common in high technology industries, competition among the commercializing firms can reduce the productivity of the innovators, resulting in a net loss of societal welfare (e.g. less drugs invented and brought to market).

Michelle Eckert is Marketing and Communications Coordinator for the Mack Institute, where she works to engage students, researchers, and corporate partners in opportunities for collaboration. Michelle received her B.A. in Art from Valparaiso University in 2007. Her background includes two AmeriCorps terms of service working to teach mathematics, computer literacy, and job readiness skills to out-of-school youth in Philadelphia, focusing particularly on promoting access to post-secondary education.