Firms R&D Investments, Innovation and Market Shares
Domenico Campisi,
Agostino Bella,
Paolo Mancuso and
Alberto Nastasi
Chapter 5 in Innovative Behaviour in Space and Time, 1997, pp 77-95 from Springer
Abstract:
Abstract Technological innovation is one of the major factors in determining the long term performance of firms and economies. Here, this subject is analyzed from the point of view of the relationship between the innovative behaviour of a given firm within an oligopolistic industry and its market share. As a matter of fact, the firm capacity to change is closely connected to the size of its R&D activity which generate directly product and/or process innovation, and also develops the firm’s ability to identify, assimilate, and exploit knowledge from the external environment, taking advantage of the public research effort and even of the rivals’ R&D expenditure (Tilton 1971; Allen 1977; Mowery 1983; Cohen and Levinthal 1989; Campisi and Nastasi 1993). The traditional approach to industrial innovative activity devotes little attention to this absorptive capacity of R&D: following Arrow (1962) and Nelson (1959), economists have assumed that any innovation created by one firm provides usable information to other firms at little or no cost, so according to an unpatented innovation the status of a public good. In other terms, the intra-industry technological knowledge transfer requires negligible R&D efforts (Spence 1984; Tirole 1988; Quirmbach 1993).
Keywords: Nash Equilibrium; Market Share; Absorptive Capacity; Technological Knowledge; Static Game (search for similar items in EconPapers)
Date: 1997
References: Add references at CitEc
Citations:
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:spr:adspcp:978-3-642-60720-2_5
Ordering information: This item can be ordered from
http://www.springer.com/9783642607202
DOI: 10.1007/978-3-642-60720-2_5
Access Statistics for this chapter
More chapters in Advances in Spatial Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().