Price competition, innovation and profitability: theory and UK evidence’. CEPR Discussion Paper No. 2816. Centre for Economic Policy research (2001)
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BibTeX
@MISC{Symeonidis01pricecompetition,,
author = {George Symeonidis},
title = {Price competition, innovation and profitability: theory and UK evidence’. CEPR Discussion Paper No. 2816. Centre for Economic Policy research},
year = {2001}
}
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Abstract
Abstract: This paper examines the effect of price competition on innovation, market structure and profitability in R&D-intensive industries. The theoretical predictions are tested using UK data on the evolution of competition, concentration, innovation counts and profitability over 1952-1977. The econometric results suggest that the introduction of restrictive practices legislation in the UK had no significant effect on the number of innovations commercialised in previously cartelised R&D-intensive manufacturing industries, while it caused a significant rise in concentration in these industries. In the short run profitability decreased, but in the long run it was restored through the rise in concentration. Acknowledgments: I thank seminar participants at CEPR, the London Business School,
