The relationship between the components of market structure and technology fuzzy factor in Iranian manufacturing industries (Schumpeter approach test)

The central purpose of the present study is investigation of the relationship between market structure and technology factor for Iran’s manufacturing industries. In this paper, we have used the collected data by the statistical centre of Iran for the manufacturing industries (in the four-digit ISIC code level) during the period 1374 to 1389. The model of this paper is based on regression models of Levin - Reiss and Dasgupta - Stiglitz due to the market structural variables consist of: economies of scale, Herfindal Index concentration index, the ratio of R & D to sales and imported capital goods. Research findings indicate that the lowest coefficient of technology among Iranian manufacturing industries related to waste recycling industry. On the other hand, there is a negative relationship between the concentration and coefficient of technology. This means that monopoly industries have low coefficient of technology. In other words Schumpeterian view is violated for the Iran’s industrial markets. Hence, restructuring of Iran’s monopoly markets is required for developing of the technology coefficient. In the most of Iranian manufacturing industries not be utilized of economies of scale due to the small size and activity level of organization of production.