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On Effects of Market Integration on Technology Choice

Author

Listed:
  • Nomura, Ryoichi

    (Ritsumeikan University)

Abstract

In this paper, we investigate how market integration affects firms’ technology choices. Although market integration encourages cost-reducing research and development (R&D) investments in many cases, it may discourage it in two cases: (1) when market sizes are quite different and the effects of R&D are not so high, market integration may discourage R&D in a large country; and (2) if the firm in a large country only invests in the segmented market, market integration may discourage R&D in a large country, while encouraging it in a small country. These results correspond to data about R&D intensities in European Union countries.

Suggested Citation

  • Nomura, Ryoichi, 2006. "On Effects of Market Integration on Technology Choice," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 447-457.
    • Handle: RePEc:ris:integr:0364
    as

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    More about this item

    Keywords

    Market Integration; Technology Choice; Cournot Competition;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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