Stupak, O.

Industrial cyberespionage in research and development races

CWPE2337

Abstract: This paper examines a dynamic R&D race in which competitors can conduct cyberespionage against each other. We develop a framework that analyses the influence of cyberespionage on innovative incentives, companies’ payoffs and the quality of the end product. We demonstrate that industrial espionage has an ambiguous influence on the overall investments exerted in the race and companies’ expected payoffs and might even be beneficial for the quality of innovative end-products under certain circumstances.

Keywords: Firm Strategy, Enterprise Policy, Innovation, Inventions

JEL Codes: L51 L53 O31 O34

Author links: Oleh Stupak  

PDF: https://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe2337.pdf

Open Access Link: https://doi.org/10.17863/CAM.99038

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