Innovation and Market Structure: An Empirical Evaluation of the 'Bounds Approach' in the Chemical Industry

Georges Siotis and Marín Uribe, Pedro Luis

No 3162, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper empirically tests the ?bounds approach? to industry structure proposed by Sutton ((1991), (1998)). To carry out this task, we focus on the chemical industry. Part of the novelty in this exercise is that we work on the finest possible level of disaggregation. Also, we identify demand substitutability from direct industry sources. This allows us to carefully define markets, and identify R&D intensity for each of them. Our empirical specification allows us to simultaneously test the predictions of Sutton (1991) and Sutton (1998). Our results provide strong support to Sutton?s theoretical framework.

Keywords: Bounds approach; Market structure; Innovation; Chemical industry (search for similar items in EconPapers)
JEL-codes: L11 L65 O31 (search for similar items in EconPapers)
Date: 2002-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://cepr.org/publications/DP3162 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: INNOVATION AND MARKET STRUCTURE: AN EMPIRICAL EVALUATION OF THE ‘BOUNDS APPROACH’ IN THE CHEMICAL INDUSTRY* (2007)
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:cpr:ceprdp:3162

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP3162

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().