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Abstract. This paper examines how price competition in the product market affects the intensity and breadth of innovation. I assemble a unique data set comprising all 461 collusion cases prosecuted in the United States from 1975 through 2016 and match 1,818 collusive firms to firm-level data on innovation.
Jan 10, 2023 · This paper examines how price competition in the product market affects the intensity and breadth of innovation. I assemble a unique data set comprising all 461 prosecuted collusion cases in the ...
a different collusion start date for firms in the same collusion, even if it is evident that they started the collusion at the same time (it takes two to tango). Thus, I infer and use as the collusion-level start date the earliest collusion start date among the participant firms in each collusion. Likewise, I use the end date of
- Baseline Estimates
- Nonlinear Effects
- Robustness Tests
- Direct and Indirect Effect of Competition
Table 3 shows the average effect of competition-enhancing product market regulation on R&D (Panel A) and patent intensity (Panel B). We report point estimates using OLS and FEVD for a balanced sample of 525 country-year observations in 25 OECD countries for the period 1995–2015. Our main finding is that the point estimate for the business regulatio...
So far, we have assumed that the response to domestic and foreign competition is the same across countries. For example, several studies provide evidence that anti-competitive market regulation can have differential aggregate effects on innovation and productivity in different countries or industries according to the distance to the technological f...
To test the sensitivity of the baseline results, we conduct several robustness tests. First, an important issue with our main specification is the potential endogeneity problem of market regulation due to reverse causality bias as well as omitted variables (Aghion et al. 2005). For example, R&D expenditures and successful innovations might increase...
The main focus of this paper is to identify the causal determinants of innovation intensity and compare the results from previous estimates. The relationship between competition and innovation has grown in importance in the endogenous growth literature, but also for policymakers. However, this issue has led to contrasting theoretical arguments and ...
Jun 2, 2023 · ation, which is a key driver of economic growth and development. Innovation refers to the creation and implementation of new products, services, processes, and technologies that im. rove efficiency, productivity, and overall output in an economy. Innovation plays a crucial role in the development of new industri. s.
Mar 19, 2021 · We provide an overview of the theories and empricial evidence on the complex relationship among innovation, competition, and inclusive growth. Competition and innovation-led growth are critical to drive productivity gains and support broad-based growth. However, new technologies and trends in market concentration are stifling future innovation while contributing to the marked increase in ...
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Feb 7, 2024 · Collusion among economic operators increases prices, reduces product quality, and hinders innovation. Structural links can affect the incentive and ability of firms to behave competitively by ...
