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Revue de l'OFCE

2006/5 (no 97 bis)


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Pages 113 - 134 Article suivant



The paper analyses the co-ordinating role that markets and organisations are called on to play in determining productivity gains. In fact, the viability of innovation processes cannot be dissociated from the way market structures emerge and evolve. The success (or not) of the introduction of new technologies and the emergence and evolution of given market structures does not depend on the properties of technology, but on the capacity to coordinate the activity of the different firms participating in the restructuring process, which results in a certain degree of stability of the market structure.
JEL Classification: L 11.


  • innovation
  • market structure
  • productivity
  • viability

Plan de l'article

  1. Introduction
  2. Innovation and Sunk Costs: the Nature of Co-ordination Issues
  3. A Sequential Model
    1. The structure of productive capacity
    2. Financial resources constraint
    3. Human resources constraint
    4. Aggregate demand and market share
    5. Investment and production decisions
    6. Price and Wage Decisions
    7. Banking Policy
    8. Innovation, imitation, entry and exit
    9. Firms’ performance and market concentration
  4. The Innovative Process
  5. Conclusion

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