Competitive Pressure and the Adoption of Complementary Innovations

Tobias Kretschmer, Eugenio Miravete () and José Pernías ()
Additional contact information
José Pernías: Department of Economics, Universidad Jaume I de Castellón, http://www.eco.uji.es/

No 09-22, Working Papers from NET Institute

Abstract: Liberalization of the European automobile distribution system in 2002 limits the ability of manufacturers to impose vertical restraints, leading to a substantial restructuring of the industry and increasing the competitive pressure among dealers. We estimate an equilibrium model of profit maximization to evaluate how dealers change their innovation strategies with this regime change. Using French data we evaluate the existence of complementarities among adoptions of innovations and the scale of production. We conclude that as firms expand their scale of production they concentrate their effort in one type of innovation only. Results are robust to the existence of unobserved heterogeneity.

Keywords: Competitive Pressure; Complementarity; Product and Process Innovation (search for similar items in EconPapers)
JEL-codes: C35 L86 O31 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2009-09, Revised 2009-09
New Economics Papers: this item is included in nep-com, nep-ino, nep-mic and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Competitive Pressure and the Adoption of Complementary Innovations (2012)
Working Paper: Competitive Pressure and the Adoption of Complementary Innovations (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:net:wpaper:0922

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