Demand-Driven Innovation and Spatial Competition Over Time

Boyan Jovanovic () and Rafael Rob
Authors registered in the RePEc Author Service: Rafael Robb

The Review of Economic Studies, 1987, vol. 54, issue 1, 63-72

Abstract: This paper explores a model of innovation and spatial competition over time. A key implication of the paper is that firms' size is positively autocorrelated across time. The mechanism that generates this persistence works only in heterogenous-product markets and is based on the idea that larger firms possess better information about the design of future products. Some corroborating evidence is cited.

Date: 1987
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Working Paper: Demand-Driven Innovation and Spatial Competition Over Time (1985)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:54:y:1987:i:1:p:63-72.

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