Capital structure, product differentiation and monopoly power: a panel method approach

Explains the links between R&D investment, product differentiation and monopoly power, referring to previous research; and argues that internal financing of R&D creates even more competitive advantage. Develops mathematical models and applies them to 1990‐1996 data for a panel of 40 Greek firms and presents the results. Suggests that firms do use R&D to create entry barriers regardless of industry, that internally financed firms are more profitable but that these impacts may vary between individual firms.