According to the inverted-U theory of R&D, other things equal, firms in industries with concentration ratios around 10 percent will be more technologically progressive than firms in industries with 50 percent concentration ratios.

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The inverted-U theory suggests that technological progressiveness initially increases with industry concentration but after reaching an optimal point (often at moderate levels of concentration), it starts to decline. Therefore, firms in industries with a 50 percent concentration ratio are typically more technologically progressive than those in industries with a 10 percent concentration ratio, up to a certain point of concentration.

According to the Inverted-U Theory of R&D, Other Things Equal