Access

You are not currently logged in.

Access JSTOR through your library or other institution:

login

Log in through your institution.

Journal Article

Competition and Innovation: An Inverted-U Relationship

Philippe Aghion, Nick Bloom, Richard Blundell, Rachel Griffith and Peter Howitt
The Quarterly Journal of Economics
Vol. 120, No. 2 (May, 2005), pp. 701-728
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/25098750
Page Count: 28
Were these topics helpful?
See something inaccurate? Let us know!

Select the topics that are inaccurate.

  • Download ($42.00)
  • Subscribe ($19.50)
  • Add to My Lists
  • Cite this Item
Competition and Innovation: An Inverted-U Relationship
Preview not available

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.

Page Thumbnails

  • Thumbnail: Page 
701
    701
  • Thumbnail: Page 
702
    702
  • Thumbnail: Page 
703
    703
  • Thumbnail: Page 
704
    704
  • Thumbnail: Page 
705
    705
  • Thumbnail: Page 
706
    706
  • Thumbnail: Page 
707
    707
  • Thumbnail: Page 
708
    708
  • Thumbnail: Page 
709
    709
  • Thumbnail: Page 
710
    710
  • Thumbnail: Page 
711
    711
  • Thumbnail: Page 
712
    712
  • Thumbnail: Page 
713
    713
  • Thumbnail: Page 
714
    714
  • Thumbnail: Page 
715
    715
  • Thumbnail: Page 
716
    716
  • Thumbnail: Page 
717
    717
  • Thumbnail: Page 
718
    718
  • Thumbnail: Page 
719
    719
  • Thumbnail: Page 
720
    720
  • Thumbnail: Page 
721
    721
  • Thumbnail: Page 
722
    722
  • Thumbnail: Page 
723
    723
  • Thumbnail: Page 
724
    724
  • Thumbnail: Page 
725
    725
  • Thumbnail: Page 
726
    726
  • Thumbnail: Page 
727
    727
  • Thumbnail: Page 
728
    728