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Innovation and Market Structure in the Manufacturing Sector: An Application of Linear Feedback Models *
Author(s) -
Uchida Yuichiro,
Cook Paul
Publication year - 2007
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/j.1468-0084.2007.00450.x
Subject(s) - competition (biology) , sample (material) , market structure , manufacturing , industrial organization , manufacturing sector , linear relationship , economics , linear model , positive relationship , market share , business , international economics , marketing , computer science , mathematics , psychology , ecology , social psychology , chemistry , statistics , chromatography , machine learning , biology
In recent years, there has been a renewed interest in the relationship between market structure and innovation activities at an industry level. The paper examines the relationship between these for the manufacturing sector in a sample of 33 countries. It applies a recently developed method, based on linear feedback models, and uses cross‐country time‐series data. Despite the relatively small number of observations, the results indicate that domestic competition, external market share, and research and development have a positive effect on innovation activities. The results also suggest that the introduction of the foreign competition may have an initial positive effect on innovation activities, but over time this becomes dissipated.