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Stochastic model for innovation and resulting skew distribution for technological concentration with verification in Japanese industry

Scientometrics
Volume/Issue:
Volume 5: Issue 4
DOI:
https://doi.org/10.1007/bf02019739
Authors:
H. Eto
and
K. Makino

Abstract  

Technological resources are shown to be more concentrated to a few firms than economic wealth. To explain such concentrations, the self-multiplication process with cycle between the innovative and stagnant ages is modeled in terms of the stochastic process. This yields a family of new distributions which is named the ultra-Yule distribution. This new distribution which is quite skew is show to fit the real distributions of patents and of R & D expenditure in the Japanese industry better than the Yule distribution. The properties of this new distribution is discussed.

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