The article explores how companies in a competitive market invest in research and development (R&D). They consider factors like shared knowledge and delayed information. The study finds that in some cases, companies may not invest enough in R&D, leading to potential underdevelopment of new technologies. This suggests that policies to encourage more R&D activity may be needed, especially for significant innovations. However, for smaller innovations, the need for such policies may be less urgent, even with shared knowledge between companies.