Electronic Resource
Springer
Review of industrial organization
16 (2000), S. 13-38
ISSN:
1573-7160
Keywords:
Appropriability
;
automobile industry
;
buyer market power
;
innovation
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract This empirical paper deals with the effects of supplier and buyer market concentration on the innovative behavior of suppliers within the German automobile industry. The data set contains firms from all size classes and covers measures of innovation input as well as innovation output. It can be shown that (a) firms' innovation and R & D-employment intensity will decline (increase) in buyer concentrations if supplier markets are low (high) concentrated; (b) buyers' pressure on input prices reduces suppliers' innovation expenditures and their incentive to develop new products; (c) a small number of competitors in suppliers markets and a large stock of customers stimulates innovative behavior; (d) small and medium sized suppliers invest more in their innovative activities but have less probability of realizing innovations than larger firms; and (e) higher technological capabilities lead to higher innovation input and output.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1007731916317
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