R&D Concentration Under Endogenous Fixed Costs: Evidence from Genetically Modified Corn Seed
研究了转基因玉米种子市场中研发固定成本对市场集中度的影响，发现内生固定成本导致研发集中度高于完全竞争水平，且这种集中源于研发投资性质而非反竞争行为。
Abstract We examine the role of fixed costs in research and development (R&D) in the market for genetically modified (GM) corn seed. In a mixed model of horizontal differentiation by genetic traits and vertical differentiation by productivity, we derive the empirically testable lower bounds to R&D concentration when R&D investments and market entry are jointly determined. When R&D investments translate into higher product quality, industries are said to be characterized by endogenous fixed costs such that the lower bound to R&D concentration increases with market size, but is less than the lower bound to market concentration based on sales. Using data on field trial applications of GM corn seed, we estimate the lower bound to R&D concentration, and find evidence of endogenous fixed costs with R&D concentration that is significantly greater than perfectly competitive levels. These endogenous fixed costs imply that concentration in the agricultural biotechnology industry is occurring due to the nature of R&D investment in product quality and not through anticompetitive practices. Adjusting for past merger and acquisition activity significantly raises the lower bound for infinitely‐sized markets, but has no impact upon current market sizes, implying the industry may still undergo additional consolidation.