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Leader-Follower vs. Neck-to-Neck: Competition and Technological Status Across Bolivian Industries

Author

Listed:
  • Adriana Beatriz Caballero Caballero

    (University of Geneva)

  • Leticia Victoria Castedo Michel

    (Universidad de Padova)

  • Sergio Rómulo Salazar Molina

    (Ministerio de Economía y Finanzas Públicas)

Abstract

How does competition shape technological dispersion in developing economies with persistent structural rigidities? Drawing on the Schumpeterian step-by-step framework, this paper studies whether competitive pressure is associated with convergence toward the technological frontier or with the persistence of leader-follower structures. Using firm-level data from Bolivia’s 2017 Survey of Medium and Large Enterprises, we relate industry-level competition to firms’ Total Factor Productivity gaps within two-digit industries. Greater competition is systematically associated with smaller gaps, consistent with catch-up incentives. Yet the distribution of technological positions reveals that most markets operate under leader-follower configurations. Heterogeneity across firm size and sectors further indicates that technological dispersion is unevenly distributed across the industrial landscape. These findings provide a structural characterization of how competition interacts with technological asymmetries in a commodity-dependent economy, highlighting the role of market configuration in shaping innovation incentives.

Suggested Citation

  • Adriana Beatriz Caballero Caballero & Leticia Victoria Castedo Michel & Sergio Rómulo Salazar Molina, 2026. "Leader-Follower vs. Neck-to-Neck: Competition and Technological Status Across Bolivian Industries," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB), vol. 24(45), pages 163-205, May.
    • Handle: RePEc:ris:revlde:022601
    DOI: 10.35319/lajed.202645623
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    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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