CYCLICAL CONCENTRATION AND BIOTECH R&D ACTIVITY: A NEO-SCHUMPETERIAN MODEL
James F. Oehmke,
Christopher Wolf (),
Dave Weatherspoon (),
Anwar Naseem (),
Kellie Raper and
Amie L. Hightower
No 11792, Staff Paper Series from Michigan State University, Department of Agricultural, Food, and Resource Economics
Several characteristics of biotech industry structure follow cyclical patterns. Mergers and acquisitions activity shows cyclical behavior, with peaks from 1988-92 and 1996-97 and a valley from 1993-95. The ratio of large-firm to small-firm field trials, and the Herfindahl-Hirshmann concentration index, move pro-cyclically with M&A activity. This paper develops a formal, dynamic, neo-Schumpeterian model of endogenous R&D and innovation. The model generalizes and extends the literature on biotech industry concentration. For specified parameter values, the out-of-steady-state dynamics are examined, and shown to generate model behavior which is consistent with empirical descriptions of biotech concentration and R&D-activity cycles.
Keywords: Research; and; Development/Tech; Change/Emerging; Technologies (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:midasp:11792
Access Statistics for this paper
More papers in Staff Paper Series from Michigan State University, Department of Agricultural, Food, and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().