Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25408
Authors: 
Escrihuela-Villar, Marc
Year of Publication: 
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: 
Document Type: 
Working Paper

Files in This Item:
File
Size
791.49 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.