Competitive Pressure and the Adoption of Complementary Innovations
AbstractLiberalization of the European automobile distribution system in 2002 limits the ability of manufacturers to impose vertical restraints, leading to a substantial increase in competitive pressure among dealers. We estimate an equilibrium model of profit maximization to evaluate how dealers change their innovation adoption strategies following the elimination of exclusive territories. Using French data we evaluate the existence of complementarities between the adoption of software applications and the scale of production. Firms view these innovations as substitutes and concentrate their effort in one type of software as they expand their scale of production. Results are robust to the existence of unobserved heterogeneity. (JEL D24, K21, L21, L22, L62, O32)
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 102 (2012)
Issue (Month): 4 (June)
Other versions of this item:
- Tobias Kretschmer & Eugenio Miravete & José Pernías, 2009. "Competitive Pressure and the Adoption of Complementary Innovations," Working Papers 09-22, NET Institute, revised Sep 2009.
- Kretschmer, Tobias & Miravete, Eugenio J & Pernías, Jose C, 2011. "Competitive Pressure and the Adoption of Complementary Innovations," CEPR Discussion Papers 8289, C.E.P.R. Discussion Papers.
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Philippe Aghion & Richard Blundell & Rachel Griffith & Peter Howitt & Susanne Prantl, 2004.
"Entry and Productivity Growth: Evidence from Microlevel Panel Data,"
Journal of the European Economic Association,
MIT Press, vol. 2(2-3), pages 265-276, 04/05.
- Prantl, Susanne & Howitt, Peter & Griffith, Rachel & Blundell, Richard & Aghion, Philippe, 2004. "Entry and Productivity Growth: Evidence From Microlevel Panel Data," Scholarly Articles 4481510, Harvard University Department of Economics.
- Aghion, P. & Blundell, R. & Griffith, R. & Howitt, P. & Prantl, S., 2004. "Entry and productivity growth: evidence from microlevel panel data," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- José E. Galdón-Sánchez & James A. Schmitz Jr., 2002.
"Competitive Pressure and Labor Productivity: World Iron-Ore Markets in the 1980's,"
American Economic Review,
American Economic Association, vol. 92(4), pages 1222-1235, September.
- Jose E. Galdon-Sanchez & James A. Schmitz, Jr., 2003. "Competitive pressure and labor productivity: world iron ore markets in the 1980s," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr, pages 9-23.
- Schmutzler, Armin, 2010.
"The relation between competition and innovation -- Why is it such a mess?,"
CEPR Discussion Papers
7640, C.E.P.R. Discussion Papers.
- Armin Schmutzler, 2007. "The relation between competition and innovation – Why is it such a mess?," Working Papers 0716, University of Zurich, Socioeconomic Institute, revised Jan 2010.
- Boone, Jan, 2000.
CEPR Discussion Papers
2636, C.E.P.R. Discussion Papers.
- Miravete, Eugenio J & Pernias, Jose C, 2004.
"Innovation Complimentarity and Scale of Production,"
CEPR Discussion Papers
4483, C.E.P.R. Discussion Papers.
- Miravete, Eugenio J. & Pernias, Jose C., 1998. "Innovation Complementarity and Scale of Production," Working Papers 98-42, C.V. Starr Center for Applied Economics, New York University.
- Blundell, Richard & Griffith, Rachel & van Reenen, John, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Wiley Blackwell, vol. 66(3), pages 529-54, July.
- Miravete, Eugenio J. & Pernías, José C., 2010. "Testing for complementarity when strategies are dichotomous," Economics Letters, Elsevier, vol. 106(1), pages 28-31, January.
- Maican, Florin G., 2012. "From Boom to Bust and Back Again: A dynamic analysis of IT services," Working Papers in Economics 543, University of Gothenburg, Department of Economics.
- Hottenrott, Hanna & Rexhäuser, Sascha & Veugelers, Reinhilde, 2012.
"Green innovations and organisational change: making better use of environmental technology,"
CEPR Discussion Papers
9055, C.E.P.R. Discussion Papers.
- Hottenrott, Hanna & Rexhäuser, Sascha & Veugelers, Reinhilde, 2012. "Green innovations and organizational change: making better use of environmental technology," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/352255, Katholieke Universiteit Leuven.
- Hottenrott, Hanna & Rexhäuser, Sascha & Veugelers, Reinhilde, 2012. "Green innovations and organizational change: Making better use of environmental technology," ZEW Discussion Papers 12-043, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- George van Leeuwen & Pierre Mohnen, 2013.
"Revisiting the Porter Hypothesis: An Empirical Analysis of Green Innovation for the Netherlands,"
CIRANO Working Papers
- Leeuwen, George van & Mohnen, Pierre, 2013. "Revisiting the porter hypothesis: An empirical analysis of green innovation for the Netherlands," UNU-MERIT Working Paper Series 002, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Van Leeuwen, George & Polder, Michael, 2013. "Linking ICT related Innovation Adoption and Productivity: results from micro-aggregated data versus firm-level data," MPRA Paper 46479, University Library of Munich, Germany.
- Hou, Jun & Mohnen, Pierre, 2013. "Complementarity between internal knowledge creation and external knowledge sourcing in developing countries," UNU-MERIT Working Paper Series 010, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Kretschmer, Tobias & Rösner, Mariana, 2010. "Increasing Dominance - the Role of Advertising, Pricing and Product Design," Discussion Papers in Business Administration 11500, University of Munich, Munich School of Management.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.