Firms and Markets

The department at a glance

Research profile

The “Firms and Markets” department analyzes the determinants of firms’ strategic behavior, the introduction of innovations, new goods, and services as well as firms’ efficiency and productivity. In particular, together with the “Competition and Consumers” department within the “Industrial Economics” cluster, the department’s research is focused on the study of the causes and outcomes of market-related policies and institutions that affect competition, including product market regulations as well as competition, industrial, and innovation policies.

Our research is empirical in nature and is based on an integrated approach where the insights from theoretical industrial organization models are analyzed and tested by means of a wide variety of microeconometric methodologies such as structural econometric models, policy evaluation and panel methods, as well as semi- and non-parametric techniques. A strong integration between theory and empirics along with the use of several rich and representative micro datasets are important aspects of the department’s research strategy. The department has developed competences in the preparation and use of data from the official statistics, which are particularly well suited to analyze firms’ productivity, efficiency and innovation capabilities. Moreover, working with both domestic and foreign partners, the department has developed various sectoral databases.

The department aims at making major high quality academic contributions in the field of applied microeconomics and industrial organization in particular. Based on this strong methodological foundation, we target important policy questions in order to provide policy makers with both robust knowledge and the right tools to evaluate the performance of public interventions. In addition to our publically funded basic research, we participate in several national and international projects that are financed by a wide range of institutions including German ministries and the European Commission.

The research topics analyzed by the department are grouped into two complementary research fields “Markets and Competition” and “Productivity and Innovation”. A young-academic research group financed by the Leibniz Association focuses on the analysis of the “Efficiency of Municipal Infrastructures”, thus bridging the two departmental research areas and providing a link to other DIW Berlin departments.

The Department’s Main Research Fields and the Connections within the DIW Berlin

Leibniz Project Efficiency of Municipal Infrastructures

Research Areas

Markets and Competition
Productivity and Innovation