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Competition, Rivalry And Innovative Behaviour

Author

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  • Suma Athreye

Abstract

This paper is an empirical study of the importance of competition and rivalry in explaining innovative behaviour by software firms. The paper distinguishes between two notions of competition. One in which rivalry occurs due the possession of greater market power, and the other in which rivalry occurs due to diffennces in the abilities of firms. In addition the paper also decomposes changes in the extent of innovation due to the activities of firms that are innovators and due to changes in the probability of innovating. Competition always influences the extent of innovation by changing the propensity of firms to innovate.

Suggested Citation

  • Suma Athreye, 2001. "Competition, Rivalry And Innovative Behaviour," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(1), pages 1-21.
  • Handle: RePEc:taf:ecinnt:v:10:y:2001:i:1:p:1-21
    DOI: 10.1080/10438590100000001
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    Cited by:

    1. Elizabeth Webster, 2004. "Firms' decisions to innovate and innovation routines," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(8), pages 733-745.

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