ABSTRACT
We saw in chapter 2 that there is a long tradition of studies which tend to emphasise one or other of the following observations. First, that R&D activity has an element of fixed cost to it, that these fixed costs are high, that there are economies of scale and that the incumbent monopolist has more to lose by failing to innovate than the prospective entrant has to gain, so that, all in all, technical change is concentrating.
