Leader-Follower vs. Neck-to-Neck: Competition and Technological Status Across Bolivian Industries

Adriana Beatriz Caballero Caballero, Leticia Victoria Castedo Michel and Sergio Rómulo Salazar Molina
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Adriana Beatriz Caballero Caballero: University of Geneva
Leticia Victoria Castedo Michel: Universidad de Padova
Sergio Rómulo Salazar Molina: Ministerio de Economía y Finanzas Públicas

Revista Latinoamericana de Desarrollo Economico, 2026, vol. 24, issue 45, 163-205

Abstract: How does competition shape technological dispersion in developing economies with persistent structural rigidities? Drawing on the Schumpeterian step-by-step framework, this paper studies whether competitive pressure is associated with convergence toward the technological frontier or with the persistence of leader-follower structures. Using firm-level data from Bolivia’s 2017 Survey of Medium and Large Enterprises, we relate industry-level competition to firms’ Total Factor Productivity gaps within two-digit industries. Greater competition is systematically associated with smaller gaps, consistent with catch-up incentives. Yet the distribution of technological positions reveals that most markets operate under leader-follower configurations. Heterogeneity across firm size and sectors further indicates that technological dispersion is unevenly distributed across the industrial landscape. These findings provide a structural characterization of how competition interacts with technological asymmetries in a commodity-dependent economy, highlighting the role of market configuration in shaping innovation incentives.

Keywords: Market Structure; Schumpeterian Effect; Unbalanced industry status (search for similar items in EconPapers)
JEL-codes: D40 L16 O30 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ris:revlde:022601

DOI: 10.35319/lajed.202645623

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