Effects of innovation on the European wood industry market structure

This study primarily aimed to contrast the potential relationships between innovation and market concentration. Thus, the relationship between innovation and the European wood industry market structure was analysed. An empirical model was assessed through panel techniques, wherein the wood industry market structure was explained through business-related variables and additional variables associated with generating innovation. The primary conclusion of this study with respect to the European wood industry is that R&D spending and R&D personnel are key factors in explaining market concentration. However, the influence of these variables may be affected by the initial degree of market concentration in the industry.