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Market Structure, Firm Characteristics and Innovative Activity

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  • Kraft, Kornelius

Abstract

In this study, the determinants of product innovation by West German firms operating in the metal industry are investigated. A strong positive impact of imperfect competition on innovative activity is estimated. Aside from competition and barriers to entry, factors like the ownership structure of a firm, internal finance, and the skill level of the workforce are considered. One result is that firms led by hired managers tend to innovate less intensively than owner-managed enterprises. Copyright 1989 by Blackwell Publishing Ltd.

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  • Kraft, Kornelius, 1989. "Market Structure, Firm Characteristics and Innovative Activity," Journal of Industrial Economics, Wiley Blackwell, vol. 37(3), pages 329-336, March.
  • Handle: RePEc:bla:jindec:v:37:y:1989:i:3:p:329-36
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