Competition, R&D Activities and Endogenous Growth
A prediction of the endogenous growth models with quality ladders is that there exists a negative relation between growth and the degree of market competition. The aim of this article is to shed light on the relation between competition and growth when horizontal and vertical innovations can simultaneously occur by adopting the structure of the patent race model; we show the way in which the toughness of competition influences the firms’ incentives to invest in the two R&D activities; in particular, the presence of vertical and horizontal differentiation can determine a non monotonic long run relationship between competition and growth.
|Date of creation:||01 Dec 2003|
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- Boone, J., 2000.
"Competitive pressure : The effects on investments in product and process innovation,"
Other publications TiSEM
88418185-7603-4c36-92fd-3, Tilburg University, School of Economics and Management.
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" The Long-Run Growth Effects of R&D Subsidies,"
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Springer, vol. 5(3), pages 277-305, September.
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3223, National Bureau of Economic Research, Inc.
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- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Boone, Jan, 2001. "Intensity of competition and the incentive to innovate," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 705-726, April.
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