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- W2044156939 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. There are two ways in which competitive pressure can be thought of as a driving force to innovate. In leveled industries where all the firms have access to the same technological knowledge, the greater is the intensity of competition between the neck by neck firms the lower will be their current profits. Thus, as the competitive pressure increases, these firms will devote a higher ft&D effort to obtain a leadership and escape from the unprofitable state. In unleveled industries, where one firm has obtained a technological lead, the greater is the intensity of competition, the lower will be the current profit of the laggard firm. This should increase the incentive of this firm to eliminate its disadvantage by catching-up or leapfrogging the current leader. We assume that if a laggard firm succeeds in innovating, it will either leapfrog the leader with some probability or catch-up its technology with the complementary probability. The dynamics of industry are thus more complex than in pure leapfrogging models. By using a quadratic R&D cost function, we investigate how innovation and growth are affected in the stationary state by the intensity of competition and by the probability of leapfrogging." @default.
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- W2044156939 date "2000-01-01" @default.
- W2044156939 modified "2023-09-23" @default.
- W2044156939 title "Concurrence, innovation et croissance : un modèle de création non destructrice." @default.
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- W2044156939 doi "https://doi.org/10.3406/cep.2000.1293" @default.
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