Competitive environment and innovation intensity
Abstract
We find a U-shaped relation between industry concentration and innovation. The relation is driven by neck-and-neck industries where firms operate with similar productivity. When industry concentration is low, innovation intensity decreases as concentration increases. However, when industry concentration is high, increased concentration causes industry firms to increase innovation intensity to escape competition. The U-shaped relation is more...
Paper Details
Title
Competitive environment and innovation intensity
Published Date
Aug 1, 2019
Journal
Volume
41
Pages
44 - 59
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Notes
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