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Reflections on the Relation Between Competition and Innovation

  • Raymond De Bondt
  • Jan Vandekerckhove
Article

Abstract

In this paper some reflections are developed on the relation between the organization of markets and innovative activities. The IO (Industrial Organization) predictions often depend crucially on the structural and behavioral characteristics of markets (or industries). To some extent this is also the case for the relation between innovation and competition. But a synthesis of existing work provides nevertheless some robust tendencies, including the predictions that in many cases the aggregate R&D activity is positively or inverted-U related with competition intensity. Clearly this tendency may be useful for positive analysis and policy.

Keywords

competition innovation patent races strategic investments general equilibrium models 

JEL

L10 L13 O31 

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Faculty of Business and EconomicsCatholic University of LeuvenLeuvenBelgium

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