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Information Journal Paper

Title

THE EFFECT OF MARKET STRUCTURE ON INNOVATION AND R&D IN IRAN’S MANUFACTURING SECTOR

Pages

  1-25

Abstract

 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.

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    APA: Copy

    KHODADAD KASHI, FARHAD, ZARRA NEZHAD, MANSOUR, & YOUSEFI HAJIABADI, REZA. (2014). THE EFFECT OF MARKET STRUCTURE ON INNOVATION AND R&D IN IRAN’S MANUFACTURING SECTOR. JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), 13(4), 1-25. SID. https://sid.ir/paper/86677/en

    Vancouver: Copy

    KHODADAD KASHI FARHAD, ZARRA NEZHAD MANSOUR, YOUSEFI HAJIABADI REZA. THE EFFECT OF MARKET STRUCTURE ON INNOVATION AND R&D IN IRAN’S MANUFACTURING SECTOR. JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH)[Internet]. 2014;13(4):1-25. Available from: https://sid.ir/paper/86677/en

    IEEE: Copy

    FARHAD KHODADAD KASHI, MANSOUR ZARRA NEZHAD, and REZA YOUSEFI HAJIABADI, “THE EFFECT OF MARKET STRUCTURE ON INNOVATION AND R&D IN IRAN’S MANUFACTURING SECTOR,” JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), vol. 13, no. 4, pp. 1–25, 2014, [Online]. Available: https://sid.ir/paper/86677/en

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