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Is competition good for innovation? A simple approach to an unresolved question


Schmutzler, Armin (2010). Is competition good for innovation? A simple approach to an unresolved question. Foundations and Trends in Microeconomics, 5(6):355-428.

Abstract

The relation between the intensity of competition and R&D investmenthas received a lot of attention, both in the theoretical and in the empirical literature. Nevertheless, no consensus on the sign of the effect of competition on innovation has emerged. This survey of the literature identifies sources of confusion in the theoretical debate. My discussion is mainly based on a unified model that simplifies the comparison of different results. This model is also applied to show which factors work in favor of a positive relation between competition and innovation.

Abstract

The relation between the intensity of competition and R&D investmenthas received a lot of attention, both in the theoretical and in the empirical literature. Nevertheless, no consensus on the sign of the effect of competition on innovation has emerged. This survey of the literature identifies sources of confusion in the theoretical debate. My discussion is mainly based on a unified model that simplifies the comparison of different results. This model is also applied to show which factors work in favor of a positive relation between competition and innovation.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:2010
Deposited On:22 Jan 2011 09:56
Last Modified:07 Dec 2017 05:06
Publisher:Now
ISSN:1547-9846
Publisher DOI:https://doi.org/10.1561/0700000035

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