Innovation Rivalry: Theory and Empirics
John T. Scott and Troy J. Scott, “Innovation Rivalry: Theory and Empirics,” Economia e Politica Industriale-Journal of Industrial and Business Economics, Vol. 41, No. 1 (2014), pp. 25-53.
40 Pages Posted: 22 Mar 2015
Date Written: September 16, 2013
This paper develops the theory of a U relation between seller concentration and R&D investment and integrates the new theory with the traditional expectation of an inverted-U relation. The paper illustrates the U relation, and the integrated U and inverted-U relations, for a single type of R&D performed in most industries, exploiting differences in the degree of structural competition across industries while admitting little if any variation in the type of R&D.
Keywords: innovation, inverted U, research and development (R&D), seller concentration, Schumpeterian competition
JEL Classification: L10, L20, O31, O32
Suggested Citation: Suggested Citation