EconPapers    
Economics at your fingertips  
 

Asymmetric Regulation and Incentives for Innovation

Thomas Lyon () and Haizou Huang

Industrial and Corporate Change, 1995, vol. 4, issue 4, 769-76

Abstract: Under asymmetric regulation, different firms in the same industry are subjected to different levels of regulatory restraint. We analyze the nature of innovation rivalry in such an industry, emphasizing that a rival may be able to inexpensively imitate an innovator's successful new technology. Although asymmetric regulation may slow the industry-wide pace of innovation, it does not necessarily do so. In fact, by weakening incentive to imitate, regulation may make an unregulated entrant's innovation profitable, thereby accelerating innovation. Conversely, giving the regulated firm incentives may backfire by producing either excessive or insufficient innovation; these negative outcomes are more likely the greater the cost-reducing potential offered by the new technology. Copyright 1995 by Oxford University Press.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: https://EconPapers.repec.org/RePEc:oup:indcch:v:4:y:1995:i:4:p:769-76

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by David Teece, Glenn R. Carroll, Nick Von Tunzelmann, Giovanni Dosi and Franco Malerba

More articles in Industrial and Corporate Change from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2020-11-26
Handle: RePEc:oup:indcch:v:4:y:1995:i:4:p:769-76