IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-17-00198.html

Innovation, market power and biotechnology in the Brazilian Chemical industry

Author

Listed:
  • Gilson Silva jr

    (Federal University of Santa Catarina - Brazil)

  • José Maria Silveira

    (State University of Campinas - Brazil)

  • Júlia Paranhos

    (Federal University of Rio de Janeiro - Brazil)

  • Lia Hasenclever

    (Federal University of Rio de Janeiro - Brazil)

  • Rogério Miranda

    (Institute of Applied Economic Research - Ipea)

Abstract

The aim of this paper is to analyze ex-ante (market share) and ex-post (appropriability) market power and the impact of biotechnology on Brazilian Chemical industry firms' innovation and R&D decisions using microdata from Brazilian innovation surveys. The same study was carried out on firms from the general manufacturing industry and used as a benchmark. This kind of research is particularly important given that innovation and biotechnology are on government and industry agendas. The descriptive results show that chemical industry firms on average use more biotechnology, are more innovative, use more appropriability mechanisms and have a larger market share than manufacturing industry firms. Regression analysis results suggest that ex-ante and ex-post market power have a positive impact on decisions made by manufacturing and chemical industry firms in terms of both R&D and innovation. Biotechnology has an overall positive impact on all manufacturing industrial firms R&D and innovative activity. Regarding chemical industry firms, the positive impact is only noted on continuous R&D. This suggests that biotechnology in the chemical industry is a specific innovative effort that can spread throughout the whole industry since chemistry is part of all products and production processes. Considering the industry as a whole, biotechnology is most likely only viewed as a production and processing alternative. Despite this, the albeit limited use impacts the whole industry.

Suggested Citation

  • Gilson Silva jr & José Maria Silveira & Júlia Paranhos & Lia Hasenclever & Rogério Miranda, 2017. "Innovation, market power and biotechnology in the Brazilian Chemical industry," Economics Bulletin, AccessEcon, vol. 37(2), pages 1210-1216.
    • Handle: RePEc:ebl:ecbull:eb-17-00198
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I2-P108.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Caves, Richard E & Porter, Michael E, 1978. "Market Structure, Oligopoly, and Stability of Market Shares," Journal of Industrial Economics, Wiley Blackwell, vol. 26(4), pages 289-313, June.
    2. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    3. Shangqin Hong & Les Oxley & Philip McCann, 2012. "A Survey Of The Innovation Surveys," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 420-444, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Scaliza, Janaina Aparecida Alves & Jugend, Daniel & Chiappetta Jabbour, Charbel Jose & Latan, Hengky & Armellini, Fabiano & Twigg, David & Andrade, Darly Fernando, 2022. "Relationships among organizational culture, open innovation, innovative ecosystems, and performance of firms: Evidence from an emerging economy context," Journal of Business Research, Elsevier, vol. 140(C), pages 264-279.
    2. Hoa Trong Hoang & Dung The Pham & Duc Dinh Nguyen, 2018. "Innovation practices at Vietnamese manufacturers: the impacts of innovation on profitability and growth," Economics Bulletin, AccessEcon, vol. 38(3), pages 1457-1466.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chang-Yang Lee & Ji-Hwan Lee & Ajai S. Gaur, 2017. "Are large business groups conducive to industry innovation? The moderating role of technological appropriability," Asia Pacific Journal of Management, Springer, vol. 34(2), pages 313-337, June.
    2. Henri A. Schildt & Markku V.J. Maula & Thomas Keil, 2005. "Explorative and Exploitative Learning from External Corporate Ventures," Entrepreneurship Theory and Practice, , vol. 29(4), pages 493-515, July.
    3. repec:osf:socarx:qzmf8_v1 is not listed on IDEAS
    4. Galasso, Alberto & Schankerman, Mark, 2013. "Patents and Cumulative Innovation:Causal Evidence from the Courts," IIR Working Paper 13-16, Institute of Innovation Research, Hitotsubashi University.
    5. Andrés Langebaek R. & Diego Vásquez E., 2007. "Determinantes de la actividad innovadora en la industria manufacturera colombiana," Borradores de Economia 433, Banco de la Republica de Colombia.
    6. Crass, Dirk & Garcia Valero, Francisco & Pitton, Francesco & Rammer, Christian, 2016. "Protecting innovation through patents and trade secrets: Determinants and performance impacts for firms with a single innovation," ZEW Discussion Papers 16-061, ZEW - Leibniz Centre for European Economic Research.
    7. Aiello, Francesco & Albanese, Giuseppe & Piselli, Paolo, 2019. "Good value for public money? The case of R&D policy," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1057-1076.
    8. Hałaj, Grzegorz & Żochowski, Dawid, 2006. "Strategic groups in Polish banking sector and financial stability," MPRA Paper 326, University Library of Munich, Germany.
    9. Beschorner, Patrick Frank Ernst, 2008. "Do Shorter Product Cycles Induce Patent Thickets?," ZEW Discussion Papers 08-098, ZEW - Leibniz Centre for European Economic Research.
    10. Luintel, Kul B. & Khan, Mosahid, 2017. "Ideas production and international knowledge spillovers: Digging deeper into emerging countries," Research Policy, Elsevier, vol. 46(10), pages 1738-1754.
    11. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    12. Fontana, Roberto & Nuvolari, Alessandro & Shimizu, Hiroshi & Vezzulli, Andrea, 2013. "Reassessing patent propensity: Evidence from a dataset of R&D awards, 1977–2004," Research Policy, Elsevier, vol. 42(10), pages 1780-1792.
    13. Luigi Alberto Franzoni, 2020. "Trade secrets law," Working Papers wp1150, Dipartimento Scienze Economiche, Universita' di Bologna.
    14. Chu, Hsiao-Ping & Yeh, Ming-Liang & Sher, Peter J. & Chiu, Yi-Chia, 2007. "Will the leading firm continue to dominate the market in the Taiwan notebook industry?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 383(2), pages 473-479.
    15. Ponce, Carlos J., 2011. "Knowledge disclosure as intellectual property rights protection," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 418-434.
    16. Miozzo, Marcela & Desyllas, Panos & Lee, Hsing-fen & Miles, Ian, 2016. "Innovation collaboration and appropriability by knowledge-intensive business services firms," Research Policy, Elsevier, vol. 45(7), pages 1337-1351.
    17. Ting, Hsiu-I & Wang, Ming-Chun & Yang, J. Jimmy & Tuan, Kai-Wen, 2021. "Technical expert CEOs and corporate innovation," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    18. Elif Bascavusoglu & Maria Pluvia Zuniga, 2005. "The effects of intellectual property protection on international knowledge contracting," Cahiers de la Maison des Sciences Economiques bla05009, Université Panthéon-Sorbonne (Paris 1).
    19. Thanos Fragkandreas, 2022. "Three Decades of Research on Innovation and Inequality: Causal Scenarios, Explanatory Factors, and Suggestions," Working Papers 60, Birkbeck Centre for Innovation Management Research, revised Feb 2022.
    20. repec:cbh:journl:v:14:y:2015:i:3:p:88-105 is not listed on IDEAS
    21. Agrawal, Ajay & Cockburn, Iain, 2003. "The anchor tenant hypothesis: exploring the role of large, local, R&D-intensive firms in regional innovation systems," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1227-1253, November.
    22. Pere Arqué‐Castells & Daniel F. Spulber, 2023. "Firm Matching in the Market for Technology: Business Stealing and Business Creation," Journal of Industrial Economics, Wiley Blackwell, vol. 71(4), pages 961-1003, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-17-00198. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.