Advertising and R&D: Theory and evidence from France
Pre-print, Working paper: This paper exploits a unique panel of 59,000 French firms over 1990-2004 to investigate the interactions between R&D, advertising and the competitive environment.The empirical findings confirm the predictions of a dynamic model that complements results known in static frameworks. First, more competition pushes Neck and Neck firms to advertise more to attract a larger share of consumers on their products or services. Second, 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.
Author(s)
Philippe Askenazy, Thomas Breda, Delphine Irac
Date of publication
- 2010
Keywords JEL
Keywords
- Advertising
- Innovation
- Competition
- Lerner
Internal reference
- PSE Working Papers n°2010-45
URL of the HAL notice
Version
- 1