Economic Bulletin of the National Mining University

 

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Article

Issue:2025 №4 (92)
Section:Economics of enterprise
UDK:330.341
DOI:https://doi.org/10.33271/ebdut/92.239
Article language:Ukrainian
Pages:239-245
Title:Market structure and motivation of companies towards innovative activity
Author:Rzhavin O. Ye., Dnipro University of Technology
Annotation:Metods. The research presented in the article is aimed at forming a conceptual basis for establishing the relationship between market structure and innovative activity of enterprises. Its information base was the works of prominent representatives of the theory of industry markets, as well as the new industrial organization. By applying the historical and logical method, the genesis of ideas about the interaction of monopoly and competition in the innovation process was considered. Functional analysis allowed us to determine the relationship between the profitability and intensity of innovative activity of firms. Results. The article presents the evolution of economists' views on the relationship between the type of market structures and the interest of companies operating within them to carry out innovative activity. It is established that the vast majority of works in this area reproduce the authors' desire to empirically confirm J. Schumpeter's hypothesis that not perfect competition, but firms with a certain degree of market power are the leaders of scientific and technological progress. The results obtained are compared and a conclusion is drawn about the ambiguity, and sometimes even contradiction, of the argument in favor of the fact that only structures of imperfect competition are more prone to innovative activity. Novelty. The idea is formed that existing studies of market structure and innovation have revealed a complex relationship between these phenomena and have demonstrated the lack of unanimity in the empirical evidence of this dependence. Theoretical explorations in the field of studies of market concentration and innovative activity of firms have revealed the lack of staticity in the influence of market power on innovation. It is demonstrated that such influence has a dynamic nature and is different for different levels of competition and market concentration. Practical value. The results of the study can serve as a theoretical basis for making more informed management decisions in the field of investment and innovation activities of firms, as well as antitrust authorities that regulate the levels of concentration of national industry markets. 
Keywords:Market structure, Market power, Market concentration, Innovation activity, Innovative competition
File of the article:EV20254_239-245.pdf
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