The Effect of Market Structure on Innovation and R;D in Iran’s Manufacturing Sector
The main purpose of this paper is to investigate the effect of market structure on innovation and R&D in Iran’s manufacturing sector. To do this, first, statistical data for Iran’s manufacturing sector has been gathered in International Standard Industrial Classification (ISIC) format, then mutu...
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2014-01-01
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| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-11639-en.pdf |
| _version_ | 1797803126060744704 |
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| author | Farhad Khodadad Kashi Mansour Zarra Nezhad Reza Yousefi Hajiabad |
| author_facet | Farhad Khodadad Kashi Mansour Zarra Nezhad Reza Yousefi Hajiabad |
| author_sort | Farhad Khodadad Kashi |
| collection | DOAJ |
| description | The main purpose of this paper is to investigate the effect of market structure on innovation and R&D in Iran’s manufacturing sector. To do this, first, statistical data for Iran’s manufacturing sector has been gathered in International Standard Industrial Classification (ISIC) format, then mutual effects of concentration, innovation and R&D, advertising and profitability in different industrial activities have been analyzed using simultaneous equations system and Error Component Tow Stage Least Squares (EC2SLS) during 1996-2007. The results show that industrial concentration has a significant and inverted U-shaped relationship with innovation and R&D. In addition, R&D expenditure declines with increases in profitability. The investigation of the factors affecting manufacturing structure indicates that although innovation and R&D has no effect on manufacturing structure, but profitability and performance of top firms affect their concentration. Our findings exhibit the ineffectiveness of concentration and innovational behavior on industries performance; whereas increasing market concentration results in advertising expenses and innovational behavior of firms raises advertising expenses. Similarly, the lagged and accumulated effects of R&D confirm the existence of an inverted U-shaped relationship between concentration and R&D |
| first_indexed | 2024-03-13T05:17:10Z |
| format | Article |
| id | doaj.art-697aa909903045d5891c4535367e4961 |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:17:10Z |
| publishDate | 2014-01-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-697aa909903045d5891c4535367e49612023-06-15T20:41:11ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322014-01-01134125The Effect of Market Structure on Innovation and R;D in Iran’s Manufacturing SectorFarhad Khodadad Kashi0Mansour Zarra Nezhad1Reza Yousefi Hajiabad2 Associate Professor of Economics, Payam Noor University ( E-mail: khodadad@pnu.ac.ir) Professor of Economics, Shahid Chamran University, Ahvaz, (E-mail: zarram@gmail.com) Assistant Professor of Economics, Payam Noor University (E-mail: Reza.yossefi@gmail.com) The main purpose of this paper is to investigate the effect of market structure on innovation and R&D in Iran’s manufacturing sector. To do this, first, statistical data for Iran’s manufacturing sector has been gathered in International Standard Industrial Classification (ISIC) format, then mutual effects of concentration, innovation and R&D, advertising and profitability in different industrial activities have been analyzed using simultaneous equations system and Error Component Tow Stage Least Squares (EC2SLS) during 1996-2007. The results show that industrial concentration has a significant and inverted U-shaped relationship with innovation and R&D. In addition, R&D expenditure declines with increases in profitability. The investigation of the factors affecting manufacturing structure indicates that although innovation and R&D has no effect on manufacturing structure, but profitability and performance of top firms affect their concentration. Our findings exhibit the ineffectiveness of concentration and innovational behavior on industries performance; whereas increasing market concentration results in advertising expenses and innovational behavior of firms raises advertising expenses. Similarly, the lagged and accumulated effects of R&D confirm the existence of an inverted U-shaped relationship between concentration and R&Dhttp://ecor.modares.ac.ir/article-18-11639-en.pdfmarket structurecompetitionbehaviormarket performanceresearch and developmentconcentrationprofitabilityefficiencyadvertisingmanufacturing sectorsimultaneous equation systemerror component tow stage least squares |
| spellingShingle | Farhad Khodadad Kashi Mansour Zarra Nezhad Reza Yousefi Hajiabad The Effect of Market Structure on Innovation and R;D in Iran’s Manufacturing Sector پژوهشهای اقتصادی market structure competition behavior market performance research and development concentration profitability efficiency advertising manufacturing sector simultaneous equation system error component tow stage least squares |
| title | The Effect of Market Structure on Innovation and R;D in Iran’s Manufacturing Sector |
| title_full | The Effect of Market Structure on Innovation and R;D in Iran’s Manufacturing Sector |
| title_fullStr | The Effect of Market Structure on Innovation and R;D in Iran’s Manufacturing Sector |
| title_full_unstemmed | The Effect of Market Structure on Innovation and R;D in Iran’s Manufacturing Sector |
| title_short | The Effect of Market Structure on Innovation and R;D in Iran’s Manufacturing Sector |
| title_sort | effect of market structure on innovation and r d in iran s manufacturing sector |
| topic | market structure competition behavior market performance research and development concentration profitability efficiency advertising manufacturing sector simultaneous equation system error component tow stage least squares |
| url | http://ecor.modares.ac.ir/article-18-11639-en.pdf |
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