Inventions inherently correlate with imperfect competition in economic models
Economic models frequently demonstrate that innovation inherently correlates with and shapes imperfect competition through mechanisms such as endogenous market structures, intellectual property rights, and firm-level knowledge accumulation.
The claim is specific, empirical, and testable within economic theory. Multiple retrieved papers analyze endogenous market structures, oligopoly, and firm heterogeneity in relation to R&D and innovation, consistently supporting the link between inventions and imperfect competition in economic modeling.
Mariagiovanna Baccara, Ronny Razin. From Thought to Practice: Appropriation and Endogenous Market Structure with Imperfect Intellectual Property Rights. 2009. https://doi.org/10.2139/ssrn.531122
The study develops a bargaining model to show how innovative ideas and appropriation problems naturally shape endogenous market structures.
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Keishun Suzuki. Competition, patent protection, and innovation with heterogeneous firms in an endogenous market structure. 2020. https://doi.org/10.1111/jpet.12415
The paper incorporates firm heterogeneity and endogenous market structure in a dynamic general equilibrium model to study competition and innovation.
Laurent Cavenaile, M. Celik, Pau Roldan-Blanco, X. Tian. Style Over Substance? Advertising, Innovation, and Endogenous Market Structure. 2021. https://doi.org/10.2139/ssrn.3804065
The research models firm growth and competition using an oligopolistic general-equilibrium framework where market structure is endogenous.
Jifeng Zheng. Innovation Concentration and Patent Market Structure. 2024. https://doi.org/10.22158/ibes.v6n5p161
The study demonstrates how R&D and newly invented knowledge directly drive industry concentration and imperfectly competitive market structures.
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