IDEAS home Printed from https://ideas.repec.org/p/cbr/cbrwps/wp212.html
   My bibliography  Save this paper

Markets, Competition, Cooperation and Innovation

Author

Listed:
  • M Kitson
  • J Michie
  • M Quinn

    ()

Abstract

The paper analyses the relationship between, on the one hand, markets, competition and cooperation, and on the other hand, firms' innovative behaviour. Drawing on ESRC Centre for Business Research survey results, the paper uses descriptive statistics and a qualitative response model to examine these relationships. Most firms face a relatively small number of major competitors. Non-price competition (or higher order qualitive competition) is ranked as more significant than price. We test formally for the relationships between competition, inter-firm cooperation and innovation. Our results indicate that a high level of domestic competition is positively correlated with the probability of innovating. In addition, inter-firm cooperation is found to be positively correlated with firms' probability of innovating. These results suggest that it is not just the degree of competition that is important but also the nature of the competitive process. Aspects of financial market pressure such as a take-over bid are found to be negatively correlated with the probability of innovating, especially in relation to product innovation.

Suggested Citation

  • M Kitson & J Michie & M Quinn, 2001. "Markets, Competition, Cooperation and Innovation," Working Papers wp212, Centre for Business Research, University of Cambridge.
  • Handle: RePEc:cbr:cbrwps:wp212
    Note: PRO-1
    as

    Download full text from publisher

    File URL: https://www.cbr.cam.ac.uk/fileadmin/user_upload/centre-for-business-research/downloads/working-papers/wp212.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thelma Quince & Hugh Whittaker, 2002. "High Tech Businesses in the UK: performance and niche markets," Working Papers wp234, Centre for Business Research, University of Cambridge.

    More about this item

    Keywords

    innovation; corporate performance; competitive environment; collaboration;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbr:cbrwps:wp212. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ruth Newman and Georgie Cohen). General contact details of provider: http://www.cbr.cam.ac.uk .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.