Innovation Dynamics and Endogenous Market Structure : Econometric Results from Aggregated Survey Data

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URL:	http://ub-madoc.bib.uni-mannheim.de/476
URN:	urn:nbn:de:bsz:180-madoc-4769
Document Type:	Working paper
Year of publication:	2001
The title of a journal, publication series:	None
Publication language:	English
Institution:	Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Classification:	JEL: C33 L11 L60 O31 ,
Subject headings (SWD):	Deutschland , Innovation , Marktstruktur , Forschung und Entwicklung
Abstract:	This paper examines empirically the relationship between innovation and market structure within a simultaneous framework at the industry level of aggregation. We use a model in which R&D affects both, demand and cost conditions. An optimization process leads to optimal industry R&D expenditure and market structure in a symmetric equilibrium. The model is applied to a newly constructed panel for Germany. Generalized Method of Moments (GMM) estimation techniques for dynamic panel data systems are used to estimate the parameters of interest. We found a positive long–run effect of R&D on markets' sales concentration. In contrast, competition enforces innovation, i.e. sales concentration has a negative impact on R&D.
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BASE: Gottschalk, Sandra ; Janz, Norbert

Google Scholar: Gottschalk, Sandra ; Janz, Norbert

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