Barros, Pedro Pita2019-10-312019-10-311993-04Barros, Pedro Pita, Multi-Project R&D Competition With Free-Entry (April, 1993). FEUNL Working Paper Series No. 201http://hdl.handle.net/10362/85973We consider a model of innovation where firms are allowed to invest in several projects. It is shown that free-entry, in the absence of start-up costs, leads to an equilibrium with one project per firm. The presence of start-up costs reintroduces the rationale for parallel projects undertaken by each firm. In this case, free-entry implies that all adjustment to changes in the gains to innovation occur through the number of firms in the market, with projects per firm remaining constant.engworking paper