© Universität Bielefeld
Economics of Innovation and Industrial Dynamics
Herbert Dawid, Philipp Harting, Andreas Pietryga, Xingang Wen
Innovation is one of the main drivers of economic development in general and of industrial change in particular. Starting with seminal work by Arrow (1962) a large body of literature in economics has analyzed empirically and theoretically the innovation incentives of firms in different economic environments as well effects of innovations on market- and industry-dynamics.
Research at ETACE contributes to this rich literature in the framework of oligopolistic markets with a particular focus on the dynamic analysis of feedbacks between (innovation) incentives of firms and changes in industrial structure. Changes in industrial structure here refers to the emergence of new submarkets through product innovation, the generation of new firms or the change in legal environments. We also study the interplay between firms’ innovation performance and their standing in the financial market. Methods from (dynamic) game theory as well as from agent-based computational economics are used to address these issues.
Recently a particular focus of our work has been on innovation incentives and market dynamics in markets with rising importance of smart products, such as autonomous vehicles.
Publications by ETACE members in this Research Area: