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Catching-up or Leapfrogging ? The Effects of Competition on Innovation and Growth

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Author Info

  • Encaoua, D.
  • Ulph, D.

Abstract

The main objective of this paper is to analyze the links between product market competition, innovation and growth. We capture the idea that firms innovate in order to try to escape - albeit temporarily - from the pressure of competition exerted on them by their rivals. At each date, an industry may be either in a leveled or in an unleveled position. In an unleveled industry, we assume that if a laggard firm succeds in innovating, it will either leapfrog the leader with some probability or catch-up both its knowledge and its technology with the complementary probability.

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Bibliographic Info

Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Papiers d'Economie Mathématique et Applications with number 2000.97.

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Length: 35 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:pariem:2000.97

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Postal: France; Universite de Paris I - Pantheon- Sorbonne, 12 Place de Pantheon-75005 Paris, France
Phone: + 33 44 07 81 00
Fax: + 33 1 44 07 83 01
Web page: http://cermsem.univ-paris1.fr/
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Keywords: INNOVATIONS ; GROWTH RATE ; COMPETITION;

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Cited by:
  1. d'ASPREMONT, Claude & DOS SANTOS-FERREIRA, Rodolphe & GÉRARD-VARET, Louis-André, 2003. "Competition for market share or for market size: oligopolistic equilibria with varying competitive toughness," CORE Discussion Papers 2003010, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Emmanuel Duguet & Stéphanie Monjon, 2004. "Is innovation persistent at the firm Level . An econometric examination comparing the propensity score and regression methods," Cahiers de la Maison des Sciences Economiques v04075, Université Panthéon-Sorbonne (Paris 1).
  3. Reis, Ana Balcão & Traca, Daniel A., 2008. "Spillovers and the competitive pressure for long-run innovation," European Economic Review, Elsevier, vol. 52(4), pages 589-610, May.
  4. Reyer Gerlagh & Snorre Kverndokk & Knut Einar Rosendahl, 2007. "Optimal Timing of Environmental Policy. Interaction between Environmental Taxes and Innovation Externalities," Discussion Papers 493, Research Department of Statistics Norway.
  5. d’ASPREMONT, Claude & DOS SANTOS FERREIRA, Rodolphe & GERARD-VARET, Louis-André, . "Strategic R&D investment, competitive toughness and growth," CORE Discussion Papers RP -2240, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. C. Halmenschlager, 2003. "Les externalités de diffusion du savoir-faire permettent- elles de rattraper le retard dans les courses à l'innovation," Working Papers ERMES 0304, ERMES, University Paris 2.

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