Innovation and Product Market Concentration : Schumpeter, Arrow and the Inverted-U Shape Curve

We investigate the relationship between market concentration and industry innovative effort within a familiar two-stage model of R&D race in which firms compete à la Cournot in the product market. With the help of numerical simulations, we show that such a setting is rich enough to generate Arrovian, Schumpeterian and inverted-U curves. We interpret these different patterns on the basis of the relative strength of the technological incentive and the strategic incentive

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Year of publication:	2017
Authors:	Delbono, Flavio
Other Persons:	Lambertini, Luca (contributor)
Publisher:	[2017]: [S.l.] : SSRN
Subject:	Innovation \| Theorie \| Theory \| Unternehmenskonzentration \| Market concentration \| Schumpeterismus \| Schumpeterian approach \| Wettbewerb \| Competition \| Industrieforschung \| Industrial research

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