The focus in this paper is on structural and cooperative reasons of a market contribute to maximizing the expenditure of firms on R&D. We conclude that decline intensity of competition and increase the density of cooperation are important matters in increasing the expenditure on R&D. This in turn has a role in enhancing the individual and social outcomes. Moreover, growth of the market size does not necessarily imply low investments. The results suggest that the competition intensity determines the investment rate acquired from increasing new firms.