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Model of Industry Evolution under Innovations

In: Dynamics of Entry and Market Evolution

Author

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  • Jati Sengupta

    (University of California)

Abstract

How does an industry grow? What are the economic forces behind this evolution? These questions are important today in the framework of modern industrial growth, where advances in technology and innovations through R&D investments are playing very active roles. We develop here a model of industry evolution which incorporates the innovations flow and determines its growth pattern. This dynamic model characterizes the highly competitive process of adjustment in the market place, which is reflected in both output quantities and prices. Innovations add stochasticity to the competitive adjustment process.

Suggested Citation

  • Jati Sengupta, 2007. "Model of Industry Evolution under Innovations," Palgrave Macmillan Books, in: Dynamics of Entry and Market Evolution, chapter 6, pages 143-157, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-21101-8_6
    DOI: 10.1057/9780230211018_6
    as

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