Prisoners' Dilemma of Endogenous Spillovers and Investment Equilibrium Strategies of Exogenous

This paper develops two stage duopoly models involving 'technology effect', via which R&D spillovers and investment strategies are analyzed for duopoly with a technologic differentiated product. Our work indicates that endogenous spillover will present "prisoners' dilemma" phenomena and equilibrium levels of enterprises' endogenous spillover can reach the minimum when R&D endogenous spillover is considered as a controllable decision-making variable, in addition, the investment in exogenous spillover will be valuable while the equilibrium return brought by exogenous spillover is lower than optimal return.