An Empirical Test of SCP Hypothesis in World Telecom Manufacturing

Abstract- In order to verify different SCP hypothesizes of industrial organization, relations among market structure, R&D conduct and performance in world telecom manufacturing are empirically tested. As found in research, in middle-low oligopoly market of telecom manufacturing, there are significant influence of market concentration and R&D conduct on performance, vice versa. The result shows that S (concentration degree), P (gross profit rate and revenue), C (R&D intensity) represent bidirectional causality chain in middle-low oligopoly market, which partly supports conduct determination hypothesis and structure determination hypothesis respectively. As also found, technology standard regulation evidently influences performance and market structure, macro economy remarkably influences market structure, performance and R&D intensity, and R&D intensity significantly promotes macro economy. It’s suggested to utilize advantage of scale from market concentration and avoid its disadvantage, and to promote R&D input for long-term performance and macro economy