Firms' Differential Innovative Success and Market Dynamics

No 2007-078, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: This paper deals with innovative activities of firms, the resulting market success as well as the interdependencies between both. In a first theoretical part, different cases of those interdependencies are investigated by the way of a simple model based on replicator dynamics. It is shown that the resulting differential success (in those activities) of firms in a market leads to specific characteristic pattern of industry dynamics. The second empirical part of the paper is used to get an account of the working of replicator dynamics mechanism within German manufacturing. Doing so changes in firms' market shares and the relation to their respective relative technological performance and to their or innovative performance are investigated with productivity levels as a proxy for technological performance and productivity changes as proxy for innovative performance.

Keywords: Innovation; market competition; replicator dynamics; productivity decomposition (search for similar items in EconPapers)
JEL-codes: D24 L1 O3 (search for similar items in EconPapers)
Date: 2007-11-01
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-ent, nep-ino, nep-mic and nep-tid
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://oweb.b67.uni-jena.de/Papers/jerp2007/wp_2007_078.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2007-078

Access Statistics for this paper

More papers in Jena Economics Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().