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Technological opportunity and the relationship between innovation output and market structure

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  • C. Timothy Koeller

    (Wesley J. Howe School of Technology Management, Stevens Institute of Technology, Hoboken, NJ 07030, USA)

Abstract

This study examines influences of technological opportunity on the relationship between market structure and the innovation output of different-size firms. A simultaneous-equations model is specified and estimated separately for technologically progressive and technologically unprogressive industries. The study finds that innovation activities of small firms and large firms bear different relationships to market structure, in part resulting from interindustry differences in technological opportunity. In technologically progressive industries, innovation output (especially of small firms) is lower in the presence of high concentration and is increased substantially by high R&D intensity. Large-firm innovation output has a positive effect on industry concentration, but only in technologically unprogressive industries. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • C. Timothy Koeller, 2005. "Technological opportunity and the relationship between innovation output and market structure," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 209-222.
    • Handle: RePEc:wly:mgtdec:v:26:y:2005:i:3:p:209-222
    DOI: 10.1002/mde.1205
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    References listed on IDEAS

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    Cited by:

    1. Changsheng Xu & Jingjing Wang & Hai Wang, 2008. "Demand-oriented innovation of firms in China: An empirical study," Psychometrika, Springer;The Psychometric Society, vol. 3(4), pages 548-559, December.

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