The link between R&D investment and market structure: evidence from Japan

Keiichi Shima

Economics Bulletin, 2011, vol. 31, issue 2, 1706-1716

Abstract: This paper examines how market structure affects R&D investment at the firm level. Using a sample of 1338 Japanese firms, a sample selection model is employed to estimate R&D investment. The pooled sample results suggest that the likelihood of conducting R&D is negatively associated with market concentration. However, the relationship becomes insignificant when the model is estimated by industry group. Large market sales have a positive effect on the likelihood of conducting R&D for both pooled and industry group samples.

JEL-codes: L1 (search for similar items in EconPapers)
Date: 2011-06-13
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