英语翻译
This paper studies the innovation dynamics of an oligopolistic
industry.The firms compete not only in the output market but also by engaging
in productivity enhancing innovations to reduce labor costs.Rent sharing may
generate productivity dependent wage differentials.Productivity growth creates
intertemporal spillover effects,which affect the incentives for innovation at
subsequent dates.Over time the industry equilibrium approaches a steady state.
The paper characterizes the evolution of the industry's innovation behavior and
its market structure on the adjustment path.
Firms invest in labor productivity before competing in a freeentry oligopoly.► The industry’s
static and steady state equilibria are characterized and compared.► Rent sharing may generate productivity dependent
differentials.► Productivity growth is driven by wage
growth at the steady state.► Hold-up is absent in the
long-run.
Keywords
Innovation;Labor productivity; Oligopoly; Wage differentials; Productivity growth; Industry dynamics