Trade Marks and Performance in Services and Manufacturing Firms: Evidence of Schumpeterian Competition through Innovation | Zendy

Greenhalgh Christine | Zendy; Rogers Mark | Zendy

Premium

Trade Marks and Performance in Services and Manufacturing Firms: Evidence of Schumpeterian Competition through Innovation

Author(s) -

Greenhalgh Christine,

Rogers Mark

Publication year - 2012

Publication title -

australian economic review

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.308

H-Index - 29

eISSN - 1467-8462

pISSN - 0004-9018

DOI - 10.1111/j.1467-8462.2011.00665.x

Subject(s) - competitor analysis , industrial organization , competition (biology) , economics , value (mathematics) , product differentiation , creative destruction , market share , stock (firearms) , product innovation , product market , business , cournot competition , microeconomics , market economy , marketing , engineering , management , mechanical engineering , ecology , machine learning , computer science , biology , incentive

We develop Lancaster's model of consumer behaviour under product differentiation to analyse Schumpeterian creative destruction. Launching new products with novel characteristics enables firms to temporarily steal market share from rivals. Product launch is monitored by using trade marks, patents and research and development. The dataset covers a large sample of UK service and manufacturing firms. We find that stock market value is positively associated with own trade mark activity and trade mark‐active firms achieve significantly higher value‐added. Greater trade mark activity by competitors reduces net output of firms, but raises their stock market value. This is consistent with the Schumpeterian process of competition through innovation .

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here

Accelerating Research