Firm Size, Innovation and Market Structure uses evolutionary dynamic theory, non-linear mathematics and computer simulation techniques to explore the relationship between firm size, innovation and market structure.The book begins by reviewing the connection between these variables from a theoretical and an empirical point of view, and goes on to illustrate how analytical tools may be used in order to explore Schumpeterian propositions regarding firm size, innovation and the specific role of idiosyncratic events.In the concluding chapter, Mariana Mazzucato focuses on the US automobile industry from 1900-1997, and uses empirical evidence in order to determine whether or not there is a relationship between market share instability and stock price volatility, and to what degree the relationship is connected to industry specific factors.This innovative new book will prove invaluable to researchers, lecturers and scholars of industrial organisation, technology and market structure.