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- handle: 10670/1.dlcvf4
- halshs: halshs-01307705
- doi: 10.1080/10438599.2015.1046670
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info:eu-repo/semantics/altIdentifier/doi/10.1080/10438599.2015.1046670
Mots-clés
advertising R&D innovation competition Lerner D - Microeconomics/D.D4 - Market Structure, Pricing, and Design O - Economic Development, Innovation, Technological Change, and Growth O - Economic Development, Innovation, Technological Change, and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights/O.O3.O31 - Innovation and Invention: Processes and Incentives D - Microeconomics/D.D1 - Household Behavior and Family Economics/D.D1.D12 - Consumer Economics: Empirical AnalysisSujets proches
Advertising--Retail trade Advertisements Store advertising Advertising, Consumer Ads Commercial speech Retail advertising Advertising, Retail Consumer advertising Speech, Commercial Advertising, StoreCiter ce document
Philippe Askenazy et al., « Advertising and R&D: theory and evidence from France », HAL-SHS : économie et finance, ID : 10.1080/10438599.2015.1046670
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Résumé
Advertising and innovation are two engines for firms to escape competition and improve profits. We propose a model that encompasses both the static and dynamic interactions between R&D, advertising and competitive environment. It provides three main predictions. First, for a given competitive environment, quality leaders spend more in advertising in order to extract maximal rents; thus, lower costs of ads may favor R&D. Second, the inverted-U relation between competition and R&D still holds with the introduction of advertising. Third, more competition is associated with on average more advertising expenditures. Empirical evidence from a large panel of 59,000 French firms over 1990–2004 supports these three properties.