Innovation regimes, entry and market structure
This paper contains a description of an evolutionary model of industrial dynamics and a report on the simulation study of the model. The presentation of the model is partitioned into two sections. In the first section I focus on the economic features of industrial development with no technological change imbedded, while an extended version of this model with the search for innovation process included is presented in the next section. In the next two sections, results of the simulation study on technological regimes and firm entry are presented. Technological regimes relate to different types of innovation captured by the model, so I consider the cost regime, the technical performance regime and the capital productivity regime. In Sect. III I investigate the influence of the different types of innovation on the development of the industry, particularly on industry concentration and on the products' price distribution, and in the fourth section an evolution of industry structure with the possibility of firm entry is investigated.
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Volume (Year): 6 (1996)
Issue (Month): 4 ()
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- Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
- Kwasnicki, Witold & Kwasnicka, Halina, 1992. "Market, innovation, competition: An evolutionary model of industrial dynamics," Journal of Economic Behavior & Organization, Elsevier, vol. 19(3), pages 343-368, December.
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