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Mar 22, 2023 · How does competition affect innovation? Competition can be a powerful tool for driving innovation. It can motivate teams to push the boundaries of what is possible and create new solutions that have never been seen before. Companies that embrace competition as part of their culture are more likely to innovate faster than those that don’t.
Mar 19, 2021 · More competition would lead to more innovation among frontier firms and to less innovation among laggards, as predicted by the theory. Thus, to support innovation while minimizing concentration and potential negative implications on inclusive growth, both too little and too much competition may be counterproductive.
- Philippe Aghion, Reda Cherif, Fuad Hasanov
- 2021
This background note reviews the relationship between competition and innovation in both directions. This is, how competition can help boosting innovation and how innovation can shape competition. It focuses on the theoretical perspective to try to understand whether competition is indeed a driver of innovation and how it interacts with other drivers. It was prepared as a background note for ...
Sep 28, 2016 · However, there is a point where ‘too much’ competition leads to less innovation – suggesting a tipping point effect. This suggests that policies to maximise competition, as measured by number of competitors, may not be optimal for promoting innovation in emerging economies. This requires a need for more nuanced competition policy approaches.
- Frank Crowley, Declan Jordan
- 2017
Jun 2, 2023 · therein. Particularly, non-price factors such as first-mover advantages, lead-time and services spur innovation more than price-driven competition.13 This study aligns with the aforementioned Kellogg study in which a higher quantity and higher quality of patent filings successfully predicted economic growth.
Jul 1, 2020 · There is now an abundance of empirical evidence that more competition (i.e., lower markups) and lower barriers to competition are associated with more firm-level innovation and higher aggregate productivity. 2 Current models with free entry and endogenous markups connect markups to the number of firms through Bertrand competition (Peters, 2013), Cournot competition (Edmond et al., 2015 ...
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Nov 25, 2010 · Abstract. The paper investigates the effects of industry-level competition on firm-level innovation and productivity. We propose a refined version of the CDM (Crepon, Duguet, and Mairesse) model that analyses the impacts of competition on four interrelated stages of the innovation process: the choice of a firm to engage in innovation, its R&D intensity, its innovation output and labour ...
