Innovation and market concentration with asymmetric firms
AbstractThis paper considers a theoretical model of n asymmetric firms that reduce their initial unit costs by spending on R&D activities. In accordance with Schumpeterian hypotheses we obtain that more efficient (bigger) firms spend more in R&D and this leads to a more concentrated market structure. We also find a positive relationship between innovation and market concentration. This calls for a corrective tax on R&D activities to curtail strategic incentives to over-invest in R&D trying to achieve a higher market share. --
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.
Bibliographic InfoPaper provided by Center for Financial Studies (CFS) in its series CFS Working Paper Series with number 2004/03.
Date of creation: 2004
Date of revision:
Contact details of provider:
Postal: House of Finance, Grüneburgplatz 1, HPF H5, D-60323 Frankfurt am Main
Phone: +49 (0)69 798-30050
Fax: +49 (0)69 798-30077
Web page: http://www.ifk-cfs.de/
More information through EDIRC
R&D; Asymmetries; Market Concentration; Optimal Industrial Policies;
Other versions of this item:
- Marc Escrihuela-Villar, 2008. "Innovation And Market Concentration With Asymmetric Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(3), pages 195-207.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
- 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.:
- J. Poyago-Theotoky,, .
"R&D Competition with Asymmetric Firms,"
96/13, University of Nottingham, School of Economics.
- Nilssen, Tore & Pita Barros, Pedro Luis, 1998.
"Industrial Policy and Firm Heterogeneity,"
CEPR Discussion Papers
1986, C.E.P.R. Discussion Papers.
- Miyagiwa, Kaz & Ohno, Yuka, 1997. "Strategic R&D policy and appropriability," Journal of International Economics, Elsevier, vol. 42(1-2), pages 125-148, February.
- Ana I. Saracho, 2002. "Patent Licensing Under Strategic Delegation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(2), pages 225-251, 06.
- Glowicka, Ela, 2005.
"Bailouts in a common market: a strategic approach,"
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems
177, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.