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http://hdl.handle.net/10419/25408
  
Title:Innovation and market concentration with asymmetric firms PDF Logo
Authors:Escrihuela-Villar, Marc
Issue Date:2004
Series/Report no.:CFS Working Paper 2004/03
Abstract:This paper considers a theoretical model of n asymmetric firms that reduce their initial unit costs by spending on R&D activities. In accordance with Schumpeterian hypotheses we obtain that more efficient (bigger) firms spend more in R&D and this leads to a more concentrated market structure. We also find a positive relationship between innovation and market concentration. This calls for a corrective tax on R&D activities to curtail strategic incentives to over-invest in R&D trying to achieve a higher market share.
Subjects:R&D
Asymmetries
Market Concentration
Optimal Industrial Policies
JEL:L11
L52
O31
Persistent Identifier of the first edition:urn:nbn:de:hebis:30-10555
Document Type:Working Paper
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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