Innovation, Market Structure and Economic Growth

Nuno Pedro Gonçalves Palma
Additional contact information
Nuno Pedro Gonçalves Palma: Technical University of Lisbon: Faculty of Economics & Management - I.S.E.G.

Industrial Organization from EconWPA

Abstract: This paper presents a dynamic partial equilibrium model that endogenizes firms' investment decision on innovation: product innovation causes horizontal expansion growth, and process innovation causes vertical expansion growth. Market structure in different markets emerges as a consequence of different investment on innovation opportunities. Main variables that constrain this structure in a given market are the rate of scientific (basic) discoveries that permit innovation productivity, and the degree of substitution between varieties, together with the possible existence of scope economies.

Keywords: R&D; Market Structure; Growth. (search for similar items in EconPapers)
JEL-codes: L11 L20 O31 O32 O33 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-ent and nep-ino
Date: 2004-11-11
Note: Type of Document - pdf; pages: 20. comments welcome: nunopedropalma@hotmail.com

Downloads: (external link)
http://129.3.20.41/eps/io/papers/0411/0411007.pdf (application/pdf)

Related works:
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: http://EconPapers.repec.org/RePEc:wpa:wuwpio:0411007

Access Statistics for this paper

More papers in Industrial Organization from EconWPA
Series data maintained by EconWPA ().