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Firms' Differential Innovative Success and Market Dynamics

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  • Uwe Cantner

    ()
    (Friedrich Schiller University Jena, Faculty of Economics and Business Administration)

Abstract

This paper deals with innovative activities of firms, the resulting market success as well as the interdependencies between both. In a first theoretical part, different cases of those interdependencies are investigated by the way of a simple model based on replicator dynamics. It is shown that the resulting differential success (in those activities) of firms in a market leads to specific characteristic pattern of industry dynamics. The second empirical part of the paper is used to get an account of the working of replicator dynamics mechanism within German manufacturing. Doing so changes in firms' market shares and the relation to their respective relative technological performance and to their or innovative performance are investigated with productivity levels as a proxy for technological performance and productivity changes as proxy for innovative performance.

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File URL: http://zs.thulb.uni-jena.de/receive/jportal_jparticle_00081809
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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-078.

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Date of creation: 01 Nov 2007
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Handle: RePEc:jrp:jrpwrp:2007-078

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Related research

Keywords: Innovation; market competition; replicator dynamics; productivity decomposition;

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Cited by:
  1. Kox, Henk L.M. & Leeuwen, George van & Wiel, Henry van der, 2010. "Competitive, but too small - productivity and entry-exit determinants in European business services," MPRA Paper 24389, University Library of Munich, Germany.

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