Dear colleagues, The Department of Economics cordially invites you to an ad-hoc Economic Research Seminar (Department Seminar) on Thursday, October 7th, with Thomas Jungbauer (Cornell University) on "The Organization of Innovation: Incomplete Contracts and the Outsourcing Decision" Abstract: Why do firms outsource research and development (R&D) for some products while conducting R&D in-house for similar ones? An innovating firm risks cannibalizing its existing products. The more profitable these products, the more the firm wants to limit cannibalization. We apply this logic to the organization of R&D by introducing a novel theoretical model in which developing in-house provides the firm more control over the new product's location in product space. An empirical analysis of our testable predictions using pharmaceutical data concerning patents, patent expiration, and outsourcing at various stages of the R&D process supports our theoretical findings. Date: Thursday, October 7th Time: 4.30 to 6 pm (CET) Location: building D4, ground floor, room D4.0.133 The following COVID-19-related regulations apply to all events at the WU campus need to be fulfilled for attending the research seminar: 3G proof and controls * You should only attend classroom units if you are not ill. * To participate in presence units, you have to show a 3G certificate (Tested, Vaccinated, Convalescent) upon request. You can find details regarding certificates and their validity here<https://learn.wu.ac.at/open/distanzlehre/3gproof> * Please arrive on campus at least 30-45 minutes before the start of the course. To ensure that the checks can be carried out as quickly and smoothly as possible, please always bring your certificate with you on paper and have your photo ID ready as well. If necessary, please also follow the on-site guiding system. * Checks may take place in front of the building or at the beginning of the course and will be carried out by WU staff and WU security personnel. Compulsory attendance, WU check-in and contact tracing * Please use the WU check-in (checkin.wu.ac.a<http://checkin.wu.ac.a>t) at the beginning of each course unit and during exams and enter your seat number. You can find the number right on the coloured spot on the desk. Registering your attendance and documenting your seat number are the basis for (official) contact tracing; providing incorrect information can have unpleasant consequences (quarantine) for you. * In any case, please comply with the attendance regulations for the course, which were communicated in advance in the eVVZ. In case you do not fulfil the attendance obligation without a provable important reason for your absence(s) (i.e. events that you cannot directly influence), you cannot be assessed positively. * Currently, there is no obligation to wear a mouth-nose mask during courses and examinations. If you wish to wear an MNS voluntarily, you might have to take it off briefly for an identity check. With best regards, Harald Oberhofer --- Univ.-Prof. Dr. Harald Oberhofer Institute for International Economics WU Vienna University of Economics and Business Phone: +43/1/31336-4984 Fax: +43/1/31336-4984 Email: harald.oberhofer@wu.ac.at<mailto:harald.oberhofer@wu.ac.at> Webpage: https://www.wu.ac.at/ie/mitarbeiter/harald-oberhofer/ Austrian Institute of Economic Research (WIFO) Phone: +43/1/7982601-468 Fax: +43/1/7989386 Email: harald.oberhofer@wifo.ac.at<mailto:harald.oberhofer@wifo.ac.at> Webpage: http://www.wifo.ac.at/harald_oberhofer