Competition and Innovation: an Inverted-U Relationship
利用面板数据发现产品市场竞争与创新之间存在倒U型关系，并构建模型解释其机制：竞争抑制落后企业创新但激励并驾齐驱的企业创新，同时影响行业结构。
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.