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Innovation and Market Structure in the Manufacturing Sector: An Application of Linear Feedback Models

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  • Yuichiro Uchida
  • Paul Cook
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    Abstract

    In recent years, there has been a renewed interest in the relationship between market structure and innovation activities at an industry level. The paper examines the relationship between these for the manufacturing sector in a sample of 33 countries. It applies a recently developed method, based on linear feedback models, and uses cross-country time-series data. Despite the relatively small number of observations, the results indicate that domestic competition, external market share, and research and development have a positive effect on innovation activities. The results also suggest that the introduction of the foreign competition may have an initial positive effect on innovation activities, but over time this becomes dissipated. Copyright Blackwell Publishing Ltd and the Department of Economics, University of Oxford 2007.

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    Bibliographic Info

    Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

    Volume (Year): 69 (2007)
    Issue (Month): 4 (08)
    Pages: 557-580

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    Handle: RePEc:bla:obuest:v:69:y:2007:i:4:p:557-580

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    Cited by:
    1. Geronikolaou, George & Papachristou, George, 2008. "Venture Capital and Innovation in Europe," MPRA Paper 36706, University Library of Munich, Germany.
    2. Yoshitsugu Kitazawa, 2012. "An improved theoretical ground for the linear feedback model and a new indicator," Discussion Papers 58, Kyushu Sangyo University, Faculty of Economics.
    3. Gaétan de Rassenfosse & Anja Schoen & Annelies Wastyn, 2013. "Selection Bias in Innovation Studies. A Simple Test," Melbourne Institute Working Paper Series wp2013n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Yoshitsugu Kitazawa, 2007. "Some additional moment conditions for a dynamic count panel data model," Discussion Papers 29, Kyushu Sangyo University, Faculty of Economics, revised Aug 2008.

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