Which company, if any, has the greater incentive to spend money to win the ‘R&D Race?'  

Considering these effects, (productivity effect, sunk cost effect, replacement effect, efficiency effect), which are shaping the company's incentives to innovate and in what fashion? 

Q's Spending

Enginola’s spending	0	$100 million	$200 million
0	(0,0,.1)	(0, .6, .4)	(0, .8, .2)
$100 million	(.6, 0, .4)	(.4, .4, .2)	(.3, .6, .1)
$200 million	(.8, 0, .2)	(.6, .3, .1)	(.5, .5, 0)