Peroni, Chiara and Gomes Ferreira, Ivete (2010): Market competition and innovation in Luxembourg.
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This paper studies the empirical relation between market competition and innovation using Luxembourg's Structural Business Statistics. The competitive pressure in Luxembourg's markets is assessed by computing a prot elasticity measure, based on the idea of cost-efficiency. From this, the paper analyses the relation between competition and innovation performance by estimating an equation for the determinants of R&D expenditure. The results show that Luxembourg's industries are characterised by low levels of competition intensity, especially in markets relevant to competition policy and regulation. The relation between competition and innovation is non-linear and depends crucially on the efficient use of inputs to production. The impact of the distribution of technological efficiency on innovation is assessed by measuring both average technology gap and technology spread. The innovation effort is increasing as industries are closer to the frontier, and decreasing in the technology spread.
|Item Type:||MPRA Paper|
|Original Title:||Market competition and innovation in Luxembourg|
|Keywords:||competition; innovation; pro t elasticity; R&D|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
|Depositing User:||chiara peroni|
|Date Deposited:||10. May 2012 01:53|
|Last Modified:||26. Feb 2013 19:18|
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