Vertical structure and innovation: A study of the SoC and smartphone industries.
This article studies how vertical integration and upstream R&D subsidy affect innovation and welfare in vertically separated industries. I formulate a dynamic structural model of a dominant upstream firm and oligopolistic downstream firms that invest in complementary innovations. I estimate the mode...
| Published in: | RAND Journal of Economics (Wiley-Blackwell) Vol. 51; no. 3; pp. 739 - 786 |
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| Format: | Article |
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Wiley-Blackwell
Sep2020
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| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=145532465&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 145532465 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Sep2020 vid: 51 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 145532465 10.1111/1756-2171.12339 ppf: 739 ppct: 47 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 1.2MB tig: atl: Vertical structure and innovation: A study of the SoC and smartphone industries. aug: au: Yang, Chenyu affil: Department of Economics, University of Maryland, College Park su: Technological innovations Smartphone industry Vertical integration Structural models Dynamic models sug: subj: Technological innovations Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing Electronic components, navigational and communications equipment and supplies merchant wholesalers Other Electronic Parts and Equipment Merchant Wholesalers Smartphone industry Vertical integration Structural models Dynamic models ab: This article studies how vertical integration and upstream R&D subsidy affect innovation and welfare in vertically separated industries. I formulate a dynamic structural model of a dominant upstream firm and oligopolistic downstream firms that invest in complementary innovations. I estimate the model using data on the System‐on‐Chip (SoC) and smartphone industries. The results suggest that a vertical merger can increase innovation and welfare, mainly driven by the investment coordination of the merged firms. I also find that subsidizing the upstream innovation increases overall private investment, innovation, and welfare. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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