Innovation versus imitation: investigating alternative R & D strategies

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Albert N. Link, Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
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Abstract: Few topics in industrial organization have received as much attention- theoretical, empirical or policy-related-as has the relationship between market structure, firm size and innovative activity. Two issues have been addressed. First, is it the possession of, or rather the quest for, monopoly power that stimulates innovation? On the one hand, firms with monopoly power may be relatively more innovative (the so-called Schumpeterian hypothesis) owing to their ability both to finance innovation and to appropriate the associated benefits. On the other hand, firms with monopoly power may choose to exploit their position by appropriating the benefits of smaller rivals' innovations and adopt an imitative strategy. Second, is firm size, apart from market power, related to the level of innovative activity?

Additional Information

Applied Economics, 18:12, 1359-1363, DOI: 10.1080/00036848600000009
Language: English
Date: 1986
market structure, firm size, R and D, Schumpeterian hypothesis

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