The Relationship between Knowledge Intensity and Market Concentration in European Industries: An inverted U-Shape
This paper is motivated by the European Union strategy to secure competitiveness for Europe in the globalising world by focussing on technological supremacy (the Lisbon - agenda). Parallel to that, the EU Commission is trying to take a more economic approach to competition policy in general and anti-trust policy in particular. Our analysis tries to establish the relationship between increasing knowledge intensity and the resulting market concentration: if the European Union economy is gradually shifting to a pattern of sectoral specialisation that features a bias on knowledge intensive sectors, then this may well have some influence on market concentration and competition policy would have to adjust not to counterfeit the Lisbon-agenda. Following a review of the available theoretical and empirical literature on the relationship between knowledge intensity and market structure, we use a larger Eurostat database to test the shape of this relationship. Assuming a causality that runs from knowledge to concentration, we show that the relationship between knowledge intensity and market structures is in fact different for knowledge intensive industries and we establish a non-linear, inverted U-curve shape.
Year of publication: |
2008
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Authors: | Krap, Niels ; Stephan, Johannes |
Publisher: |
Halle (Saale) : Leibniz-Institut für Wirtschaftsforschung Halle (IWH) |
Subject: | Wissen | Industrie | Marktstruktur | Wirtschaftskonzentration | Lissabon Strategie | Wettbewerbspolitik | EU-Staaten | market structure | knowledge intensity | competition policy |
Saved in:
freely available
Series: | IWH Discussion Papers ; 3/2008 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 577019252 [GVK] hdl:10419/29979 [Handle] RePEc:zbw:iwhdps:iwh-3-08 [RePEc] |
Classification: | L16 - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure; Industrial Price Indices ; L40 - Antitrust Policy. General ; O33 - Technological Change: Choices and Consequences; Diffusion Processes |
Source: |
Persistent link: https://www.econbiz.de/10010267035