Market Structure, Firm Characteristics and Innovative Activity

Kornelius Kraft

Journal of Industrial Economics, 1989, vol. 37, issue 3, 329-36

Abstract: In this study, the determinants of product innovation by West German firms operating in the metal industry are investigated. A strong positive impact of imperfect competition on innovative activity is estimated. Aside from competition and barriers to entry, factors like the ownership structure of a firm, internal finance, and the skill level of the workforce are considered. One result is that firms led by hired managers tend to innovate less intensively than owner-managed enterprises. Copyright 1989 by Blackwell Publishing Ltd.

Date: 1989
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