Advertising and R&D: Theory and evidence from France

Philippe Askenazy, Thomas Breda () and Delphine Irac

PSE Working Papers from HAL

Abstract: This paper exploits a unique panel of 59,000 French firms over 1990-2004 to investigate the interactions between R&D, advertising and the competitive environment.The empirical findings confirm the predictions of a dynamic model that complements results known in static frameworks. First, more competition pushes Neck and Neck firms to advertise more to attract a larger share of consumers on their products or services. Second, for a given competitive environment, quality leaders spend more in advertising in order to extract maximal rents; thus, lower costs of ads may favor R&D.

Keywords: advertising; innovation; competition; Lerner (search for similar items in EconPapers)
Date: 2010-12
New Economics Papers: this item is included in nep-cis, nep-com, nep-ind, nep-ino, nep-knm, nep-mkt and nep-tid
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00564988v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-00564988v1/document (application/pdf)

Related works:
Journal Article: Advertising and R&D: theory and evidence from France (2016)
Working Paper: Advertising and R&D: theory and evidence from France (2016)
Working Paper: Advertising and R&D: theory and evidence from France (2016)
Working Paper: Advertising and R&D: Theory and evidence from France (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-00564988

Access Statistics for this paper

More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().