Competition and Innovation: An Inverted-U Relationship

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Competition and Innovation: An Inverted-U Relationship

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dc.contributor.author Aghion, Philippe
dc.contributor.author Howitt, Peter
dc.contributor.author Griffith, Rachel
dc.contributor.author Blundell, Richard
dc.contributor.author Bloom, Nick
dc.date.accessioned 2010-10-14T15:27:33Z
dc.date.issued 2005
dc.identifier.citation Aghion, Philippe, Nick Bloom, Richard Blundell, Rachel Griffith, and Peter Howitt. 2005. Competition and innovation: An inverted-U relationship. Quarterly Journal of Economics 120, no. 2: 701-728. en_US
dc.identifier.issn 1531-4650 en_US
dc.identifier.issn 0033-5533 en_US
dc.identifier.uri http://nrs.harvard.edu/urn-3:HUL.InstRepos:4481507
dc.description.abstract This paper investigates the relationship between product market competition and innovation. We find strong evidence of an inverted-U relationship using panel data. We develop a model where competition discourages laggard firms from innovating but encourages neck-and-neck firms to innovate. Together with the effect of competition on the equilibrium industry structure, these generate an inverted-U. Two additional predictions of the model—that the average technological distance between leaders and followers increases with competition, and that the inverted-U is steeper when industries are more neck-and-neck—are both supported by the data. en_US
dc.description.sponsorship Economics en_US
dc.language.iso en_US en_US
dc.publisher MIT Press en_US
dc.relation.isversionof http://dx.doi.org/10.1162/0033553053970214 en_US
dc.relation.hasversion http://www.economics.harvard.edu/faculty/aghion/files/comp_and_innov.pdf en_US
dash.license LAA
dc.title Competition and Innovation: An Inverted-U Relationship en_US
dc.type Journal Article en_US
dc.description.version Version of Record en_US
dc.relation.journal Quarterly Journal of Economics en_US
dash.depositing.author Aghion, Philippe
dc.date.available 2010-10-14T15:27:33Z

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  • FAS Scholarly Articles [7588]
    Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University

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