Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272634 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16007
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
It has been argued that Asia's remarkable economic achievements of the past 50 years build on institutional arrangements very different from the West, notably the central role of business groups (BGs). As Asian economies move from extensive to intensive growth, we enquire whether the business group organsational format will be as effective going forward. We argue that the ubiquity of BGs has been associated with the accretion of major market power, as well as overall concentration. Our empirical work, drawing on a sample of more than 9000 Asian firms, finds that while BGs are more innovative than non-affiliates, this is unsurprising given their access to additional resources. However, when we look at innovation at the country level, we find that the wider consequences of BGs on innovation may be negative.
Subjects: 
innovation
R&D
Asian business groups
market power
overall concentration
JEL: 
L22
O30
O53
Document Type: 
Working Paper

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