Costs faced by a firm that intends to start economic activity in a specific market segment. These costs include, for example, the expen- diture to undertake research and development (R & D) activities, the costs of acquiring production and/or distribution facilities, as well as the costs of marketing the product (i.e. advertising).

Source: Glossary of terms used in EU competition policy, Antitrust and control of concentrations, European Commission, 2002