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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
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    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.
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    Cited by:

    1. 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.
    2. 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.

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    More about this item

    Keywords

    Innovation; market power; biotechnology; Chemical industry;
    All these 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

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