Drastic innovation reduces firms’ incentives to create divisions
Author
Abstract
Suggested Citation
DOI: 10.1007/s40888-020-00176-7
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Saggi, Kamal & Vettas, Nikolaos, 2002.
"On intrabrand and interbrand competition: The strategic role of fees and royalties,"
European Economic Review, Elsevier, vol. 46(1), pages 189-200, January.
- Saggi, Kamal & Vettas, Nikolaos, 1999. "On Intrabrand and Interbrand Competition: The Strategic Role of Fees and Royalties," CEPR Discussion Papers 2110, C.E.P.R. Discussion Papers.
- Saggi, Kamal & Vettas, Nikolaos, 1999. "On Intrabrand and Interbrand Competition: The Strategic Role of Fees and Royalties," Working Papers 99-06, Duke University, Department of Economics.
- Tarun Khanna & Marco Iansiti, 1997. "Firm Asymmetries and Sequential R&D: Theory and Evidence from the Mainframe Computer Industry," Management Science, INFORMS, vol. 43(4), pages 405-421, April.
- Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005.
"Competition and Innovation: an Inverted-U Relationship,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
- Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and Innovation: An Inverted U Relationship," NBER Working Papers 9269, National Bureau of Economic Research, Inc.
- Howitt, Peter & Griffith, Rachel & Aghion, Philippe & Blundell, Richard & Bloom, Nick, 2005. "Competition and Innovation: An Inverted-U Relationship," Scholarly Articles 4481507, Harvard University Department of Economics.
- Philippe Aghion & Nicolas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and innovation: an inverted U relationship," IFS Working Papers W02/04, Institute for Fiscal Studies.
- Marius Schwartz & Earl A. Thompson, 1986. "Divisionalization and Entry Deterrence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 307-321.
- Arturs Kalnins, 2003. "Hamburger Prices and Spatial Econometrics," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(4), pages 591-616, December.
- Matsushima Noriaki & Sato Yasuhiro & Yamamoto Kazuhiro, 2013.
"Horizontal Mergers, Firm Heterogeneity, and R&D Investments,"
The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 959-990, August.
- Noriaki Matsushima & Yasuhiro Sato & Kazuhiro Yamamoto, 2009. "Horizontal mergers, firm heterogeneity, and R&D investments," ISER Discussion Paper 0754, Institute of Social and Economic Research, Osaka University.
- Arora, Ashish & Fosfuri, Andrea, 2003.
"Licensing the market for technology,"
Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 277-295, October.
- Arora, Ashish & Fosfuri, Andrea, 1999. "Licensing the Market for Technology," CEPR Discussion Papers 2284, C.E.P.R. Discussion Papers.
- Amir, Rabah, 2000.
"Modelling imperfectly appropriable R&D via spillovers,"
International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 1013-1032, October.
- Rabah Amir, 1998. "Modelling Imperfectly Appropriable R&D via Spillovers," CIE Discussion Papers 1998-07, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Gilbert Richard J, 2006.
"Competition and Innovation,"
Journal of Industrial Organization Education, De Gruyter, vol. 1(1), pages 1-23, December.
- Gilbert, Richard J, 2007. "Competition and Innovation," Competition Policy Center, Working Paper Series qt9xh5p5p9, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Gilbert, Richard J, 2007. "Competition and Innovation," Department of Economics, Working Paper Series qt9xh5p5p9, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Eugenio J. Miravete & José C. Pernías, 2006.
"Innovation Complementarity And Scale Of Production,"
Journal of Industrial Economics, Wiley Blackwell, vol. 54(1), pages 1-29, March.
- Miravete, Eugenio J. & Pernias, Jose C., 1998. "Innovation Complementarity and Scale of Production," Working Papers 98-42, C.V. Starr Center for Applied Economics, New York University.
- Miravete, Eugenio & PernÃas, Jose C, 2004. "Innovation Complimentarity and Scale of Production," CEPR Discussion Papers 4483, C.E.P.R. Discussion Papers.
- Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005.
"Market Value and Patent Citations,"
RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
- Hall, Bronwyn H. & Jaffe, A & Trajtenberg, M, 2005. "Market value and patent citations," Department of Economics, Working Paper Series qt0cs6v2w7, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Polasky, Stephen, 1992.
"Divide and conquer On the profitability of forming independent rival divisions,"
Economics Letters, Elsevier, vol. 40(3), pages 365-371, November.
- Stephen Polasky, 1993. "Divide And Conquer: On The Profitability Of Forming Independent Rival Divisions," Boston College Working Papers in Economics 210, Boston College Department of Economics.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
- Amir, Rabah & Wooders, John, 2000.
"One-Way Spillovers, Endogenous Innovator/Imitator Roles, and Research Joint Ventures,"
Games and Economic Behavior, Elsevier, vol. 31(1), pages 1-25, April.
- Amir, Rabah & Wooders, John, 1997. "One-Way Spillovers, Endogenous Innovator/Imitator Roles and Research Joint Ventures," Economics Series 43, Institute for Advanced Studies.
- Rabah Amir & John Wooders, 1998. "One-Way Spillovers, Endogenous Innovator/Imitator Roles and Research Jointventures," CIE Discussion Papers 1998-10, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- AMIR, Rabah & WOODERS, John, 1997. "One-way spillovers, endogenous innovator/imitator roles and research joint ventures," LIDAM Discussion Papers CORE 1997027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Arturs Kalnins, 2004. "An Empirical Analysis of Territorial Encroachment Within Franchised and Company-Owned Branded Chains," Marketing Science, INFORMS, vol. 23(4), pages 476-489, September.
- Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(2), pages 185-199.
- Blair,Roger D. & Lafontaine,Francine, 2011.
"The Economics of Franchising,"
Cambridge Books,
Cambridge University Press, number 9780521775892, September.
- Blair,Roger D. & Lafontaine,Francine, 2005. "The Economics of Franchising," Cambridge Books, Cambridge University Press, number 9780521772525, January.
- Baye, Michael R & Crocker, Keith J & Ju, Jiandong, 1996. "Divisionalization, Franchising, and Divestiture Incentives in Oligopoly," American Economic Review, American Economic Association, vol. 86(1), pages 223-236, March.
- Raymond De Bondt & Jan Vandekerckhove, 2012. "Reflections on the Relation Between Competition and Innovation," Journal of Industry, Competition and Trade, Springer, vol. 12(1), pages 7-19, March.
- Raphael Thomadsen, 2005. "The Effect of Ownership Structure on Prices in Geographically Differentiated Industries," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 908-929, Winter.
- Corchon, Luis C. & Gonzalez-Maestre, Miguel, 2000.
"On the competitive effects of divisionalization,"
Mathematical Social Sciences, Elsevier, vol. 39(1), pages 71-79, January.
- Luis Corchón & Miguel González-Maestre, 1994. "On the competitive effects of divisionalization," Working Papers. Serie AD 1994-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Vickers, John, 1985. "Delegation and the Theory of the Firm," Economic Journal, Royal Economic Society, vol. 95(380a), pages 138-147, Supplemen.
- Glenn C. Loury, 1979.
"Market Structure and Innovation,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(3), pages 395-410.
- Glenn C. Loury, 1976. "Market Structure and Innovation," Discussion Papers 256, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Mills, David E. & Smith, William, 1996. "It pays to be different: Endogenous heterogeneity of firms in an oligopoly," International Journal of Industrial Organization, Elsevier, vol. 14(3), pages 317-329, May.
- Anthony Creane & Carl Davidson, 2004.
"Multidivisional firms, internal competition, and the merger paradox,"
Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(4), pages 951-977, November.
- Anthony Creane & Carl Davidson, 2004. "Multidivisional firms, internal competition, and the merger paradox," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 951-977, November.
- Fershtman, Chaim & Judd, Kenneth L, 1987.
"Equilibrium Incentives in Oligopoly,"
American Economic Review, American Economic Association, vol. 77(5), pages 927-940, December.
- Chaim Fershtman & Kenneth L Judd, 1984. "Equilibrium Incentives in Oligopoly," Discussion Papers 642, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Gilbert, Richard J & Newbery, David M G, 1982. "Preemptive Patenting and the Persistence of Monopoly," American Economic Review, American Economic Association, vol. 72(3), pages 514-526, June.
- Steven D. Sklivas, 1987. "The Strategic Choice of Managerial Incentives," RAND Journal of Economics, The RAND Corporation, vol. 18(3), pages 452-458, Autumn.
- Julian Birkinshaw & Mats Lingblad, 2005. "Intrafirm Competition and Charter Evolution in the Multibusiness Firm," Organization Science, INFORMS, vol. 16(6), pages 674-686, December.
- Bharat N. Anand & Tarun Khanna, 2000. "The Structure of Licensing Contracts," Journal of Industrial Economics, Wiley Blackwell, vol. 48(1), pages 103-135, March.
- Robert E. Hoskisson & Michael A. Hitt, 1988. "Strategic control systems and relative r&d investment in large multiproduct firms," Strategic Management Journal, Wiley Blackwell, vol. 9(6), pages 605-621, November.
- repec:bla:jindec:v:48:y:2000:i:1:p:103-35 is not listed on IDEAS
- Ziss, Steffen, 1998. "Divisionalization and product differentiation," Economics Letters, Elsevier, vol. 59(1), pages 133-138, April.
- Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-1306, December.
- Rabah Amir & John Wooders, 1999.
"Effects of One‐Way Spillovers on Market Shares, Industry Price, Welfare, and R & D Cooperation,"
Journal of Economics & Management Strategy, Wiley Blackwell, vol. 8(2), pages 223-249, June.
- Rabah Amir & John Wooders, 1998. "Effects of One-way Spillovers on Market Shares, Industry Price, Welfare, and R&D Cooperation," CIE Discussion Papers 1998-09, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Amir, Rabah & Halmenschlager, Christine & Jin, Jim, 2011.
"R&D-induced industry polarization and shake-outs,"
International Journal of Industrial Organization, Elsevier, vol. 29(4), pages 386-398, July.
- Amir R. & Halmenschlager C., 2008. "R&D-Induced Industry Polarization and Shakeouts," Working Papers ERMES 0802, ERMES, University Paris 2.
- De Bondt, Raymond & Slaets, Patrick & Cassiman, Bruno, 1992. "The degree of spillovers and the number of rivals for maximum effective R &D," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 35-54, March.
- Richard Gilbert, 2006. "Looking for Mr. Schumpeter: Where Are We in the Competition-Innovation Debate?," NBER Chapters, in: Innovation Policy and the Economy, Volume 6, pages 159-215, National Bureau of Economic Research, Inc.
- Jean O. Lanjouw & Mark Schankerman, 2004. "Patent Quality and Research Productivity: Measuring Innovation with Multiple Indicators," Economic Journal, Royal Economic Society, vol. 114(495), pages 441-465, April.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Ziss, Steffen, 2007. "Hierarchies, intra-firm competition and mergers," International Journal of Industrial Organization, Elsevier, vol. 25(2), pages 237-260, April.
- Corchon, Luis C. & Gonzalez-Maestre, Miguel, 2000.
"On the competitive effects of divisionalization,"
Mathematical Social Sciences, Elsevier, vol. 39(1), pages 71-79, January.
- Luis Corchón & Miguel González-Maestre, 1994. "On the competitive effects of divisionalization," Working Papers. Serie AD 1994-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Luca Lambertini & Giuseppe Pignataro, 2019. "On the social (sub)optimality of divisionalization under product differentiation," Journal of Economics, Springer, vol. 128(3), pages 225-238, December.
- Bakaouka, Elpiniki & Milliou, Chrysovalantou, 2018.
"Vertical licensing, input pricing, and entry,"
International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 66-96.
- Elpiniki Bakaouka & Chrysovalantou Milliou, 2016. "Vertical Licensing, Input Pricing, and Entry," DEOS Working Papers 1605, Athens University of Economics and Business.
- Elpiniki Bakaouka & Chrysovalantou Milliou, 2017. "Vertical Licensing, Input Pricing, and Entry," CESifo Working Paper Series 6316, CESifo.
- Ronald Goettler & Brett Gordon, 2014. "Competition and product innovation in dynamic oligopoly," Quantitative Marketing and Economics (QME), Springer, vol. 12(1), pages 1-42, March.
- Saggi, Kamal & Vettas, Nikolaos, 2002.
"On intrabrand and interbrand competition: The strategic role of fees and royalties,"
European Economic Review, Elsevier, vol. 46(1), pages 189-200, January.
- Saggi, Kamal & Vettas, Nikolaos, 1999. "On Intrabrand and Interbrand Competition: The Strategic Role of Fees and Royalties," CEPR Discussion Papers 2110, C.E.P.R. Discussion Papers.
- Saggi, Kamal & Vettas, Nikolaos, 1999. "On Intrabrand and Interbrand Competition: The Strategic Role of Fees and Royalties," Working Papers 99-06, Duke University, Department of Economics.
- Walter Park & Ralph Sonenshine, 2012. "Impact of Horizontal Mergers on Research & Development and Patenting: Evidence from Merger Challenges in the U.S," Journal of Industry, Competition and Trade, Springer, vol. 12(1), pages 143-167, March.
- Amir, Rabah & Halmenschlager, Christine & Jin, Jim, 2011.
"R&D-induced industry polarization and shake-outs,"
International Journal of Industrial Organization, Elsevier, vol. 29(4), pages 386-398, July.
- Amir R. & Halmenschlager C., 2008. "R&D-Induced Industry Polarization and Shakeouts," Working Papers ERMES 0802, ERMES, University Paris 2.
- Michael Peneder & Martin Woerter, 2014.
"Competition, R&D and innovation: testing the inverted-U in a simultaneous system,"
Journal of Evolutionary Economics, Springer, vol. 24(3), pages 653-687, July.
- Michael Peneder & Martin Wörter, 2013. "Competition, R&D and Innovation: Testing the Inverted-U in a Simultaneous System," WIFO Working Papers 448, WIFO.
- Kangsik Choi, 2022. "Delegation in multiproduct downstream firms with heterogeneous channels," Journal of Economics, Springer, vol. 135(1), pages 75-102, January.
- Ziss, Steffen, 1999. "Divisionalization and strategic managerial incentives in oligopoly under uncertainty," International Journal of Industrial Organization, Elsevier, vol. 17(8), pages 1163-1187, November.
- Jost, Peter-J., 2011. "Joint ventures in patent contests with spillovers and the role of strategic budgeting," Journal of Economics and Business, Elsevier, vol. 63(6), pages 605-637.
- Amir, Rabah & Jin, Jim Y. & Troege, Michael, 2008. "On additive spillovers and returns to scale in R&D," International Journal of Industrial Organization, Elsevier, vol. 26(3), pages 695-703, May.
- Haucap, Justus & Rasch, Alexander & Stiebale, Joel, 2019.
"How mergers affect innovation: Theory and evidence,"
International Journal of Industrial Organization, Elsevier, vol. 63(C), pages 283-325.
- Stiebale, Joel & Haucap, Justus, 2013. "How Mergers A ffect Innovation: Theory and Evidence," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79831, Verein für Socialpolitik / German Economic Association.
- Erkal, Nisvan & Piccinin, Daniel, 2010.
"Cooperative R&D under uncertainty with free entry,"
International Journal of Industrial Organization, Elsevier, vol. 28(1), pages 74-85, January.
- Nisvan Erkal:Daniel Piccinin, 2007. "Cooperative R&D under Uncertainty with Free Entry," Department of Economics - Working Papers Series 999, The University of Melbourne.
- Abraham L. Wickelgren, 2005. "Managerial Incentives And The Price Effects Of Mergers," Journal of Industrial Economics, Wiley Blackwell, vol. 53(3), pages 327-353, September.
- Chen, Yi & Jungbauer, Thomas & Wang, Zhe, 2023. "The strategic decentralization of recruiting," Journal of Economic Theory, Elsevier, vol. 209(C).
- Stiebale, Joel, 2013.
"The impact of cross-border mergers and acquisitions on the acquirers' R&D — Firm-level evidence,"
International Journal of Industrial Organization, Elsevier, vol. 31(4), pages 307-321.
- Stiebale, Joel, 2013. "The impact of cross-border mergers and acquisitions on the acquirers' R & D Firm-level evidence," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 31(4), pages 307-321.
- Belleflamme,Paul & Peitz,Martin, 2015.
"Industrial Organization,"
Cambridge Books,
Cambridge University Press, number 9781107687899, September.
- Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107069978, January.
- Thompson, Mark James & Woerter, Martin, 2020. "Competition and invention quality: Evidence from Swiss firms," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
More about this item
Keywords
Multidivisional form; R&D; Exit;All these keywords.
JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:epolit:v:38:y:2021:i:3:d:10.1007_s40888-020-00176-7. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.