Innovation, Market Structure and Economic Growth

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

Industrial Organization from University Library of Munich, Germany

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)
Pages: 20 pages
Date: 2004-11-11
New Economics Papers: this item is included in nep-dev, nep-ent and nep-ino
Note: Type of Document - pdf; pages: 20. comments welcome: nunopedropalma@hotmail.com
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpio:0411007

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