nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2010‒02‒13
three papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Entry Selection By J.J.A. Kamphorst; E. Mendys-Kamphorst; B. Westbrock
  2. On factors promoting and hindering entry and exit. By Carree, Martin A.
  3. Importance of Technological Innovation for SME Growth: Evidence from India By Bala Subrahmanya, M. H.; Mathirajan, M.; Krishnaswamy, K. N.

  1. By: J.J.A. Kamphorst; E. Mendys-Kamphorst; B. Westbrock
    Abstract: It is well-known in the IO literature that incumbent firms may want to deter entry by behaving as if they are efficient. In this paper we show that incumbents may sometimes prefer to encourage entry by mimicking the behaviour of a less efficient firm for the following reason. If the incumbent cannot deter potential efficient entrants, he may want to elicit entry by an inefficient firm who would not enter if he knows that the incumbent is efficient. The presence of the additional firm in the market prevents further entry. The incumbent then faces a less efficient competitor in the long run.
    Keywords: Duopoly competition, entry deterrence, signalling weakness
    JEL: D43 D82 L11
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:use:tkiwps:1002&r=tid
  2. By: Carree, Martin A. (Maastricht University)
    URL: http://d.repec.org/n?u=RePEc:ner:maastr:urn:nbn:nl:ui:27-15504&r=tid
  3. By: Bala Subrahmanya, M. H.; Mathirajan, M.; Krishnaswamy, K. N.
    Abstract: This paper probes the drivers, dimensions, achievements, and outcomes of technological innovations carried out by SMEs in the auto components, electronics, and machine tool sectors of Bangalore in India. Further, it ascertains the growth rates of innovative SMEs vis-à-vis non-innovative SMEs in terms of sales turnover, employment, and investment. Thereafter, it probes the relationship between innovation and growth of SMEs by (i) estimating a correlation between innovation sales and sales growth, (ii) calculating innovation sales for high, medium, and low growth innovative SMEs and doing a aggregate one-way ANOVA, and (iii) ascertaining the influence of innovation sales, along with investment growth and employment growth on gross value-added growth by means of multiple regression analysis. The paper brings out substantial evidence to argue that innovations of SMEs contributed to their growth.
    Keywords: Technological innovations, sales growth, auto components, electronics, machine tools, Bangalore
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-03&r=tid

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