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Defensive strategies in the quality ladders

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  • Ivan Ledezma

    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, LEDa - DIAL - Laboratoire d'Economie de Dauphine - Economie de la mondialisation et du développement - Université Paris IX - Paris Dauphine : EA4404, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

Abstract

This paper analyses the potentially defensive behaviour of successful innovators and its effect on aggregate R&D effort. It proposes a quality-ladders model that endogenously determines leader's technology advantages and who innovate (the leader firm or its competitors). Regulation can have either a positive or a negative effect on R&D intensity. It can be negatively associated to aggregate innovative effort in higly deregulated economies. In more regulated ones, where deterring strategies are constrained, it yields incentives to innovate. These predictions are consistent with data on manufacturing industries of 14 OECD countries between 1987-2003.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00586709.

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Date of creation: Oct 2008
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Handle: RePEc:hal:cesptp:halshs-00586709

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Keywords: innovative leaders ; quality ladders ; R&D; regulation ; industry-level data;

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References

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  1. Tor Jakob Klette & Zvi Griliches, 1997. "Empirical Patters of Firm Growth and R&D Investment: A Quality Ladder Model Interpretation," Harvard Institute of Economic Research Working Papers 1795, Harvard - Institute of Economic Research.
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Citations

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Cited by:
  1. Ivan Ledezma, 2008. "Defensive strategies in the quality ladders," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00586709, HAL.
  2. Bruno Amable & Ivan Ledezma, 2013. "Export performance and product market regulation," Documents de travail du Centre d'Economie de la Sorbonne 13010, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  3. Bruno Amable & Ivan Ledezma & Stéphane Robin, 2014. "Product market regulation, innovation and productivity," Documents de travail du Centre d'Economie de la Sorbonne 14025, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  4. Federico Etro, 2010. "Endogenous market structures and antitrust policy," International Review of Economics, Springer, vol. 57(1), pages 9-45, March.

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