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Intangibles and industry concentration: supersize me

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  • Bajgar, Matej
  • Criscuolo, Chiara
  • Timmis, Jonathan

Abstract

This paper presents new evidence on the growing scale of big businesses in the United States, Japan and 11 European countries. It documents a broad increase in industry concentration across the majority of countries and sectors over the period 2002 to 2014. The rising concentration is strongly associated with intensive investment in intangibles, particularly innovative assets, software and data, and this relationship is magnified in more globalized and digital-intensive industries. The results are consistent with intangibles disproportionately benefiting large firms and enabling them to scale up and raise their market shares, increasingly over time.

Suggested Citation

  • Bajgar, Matej & Criscuolo, Chiara & Timmis, Jonathan, 2021. "Intangibles and industry concentration: supersize me," LSE Research Online Documents on Economics 113851, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:113851
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    More about this item

    Keywords

    competition; industry and entrepreneurship; innovation;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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