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| Author: | Boone, J. |
| Title: | Competitive pressure: the effects on investments in product and process innovation |
| Journal: | RAND Journal of Economics
2000 : AUTUMN, VOL. 31:3, p. 549-569 |
| Index terms: | COMPETITION INNOVATION INVESTMENT |
| Language: | eng |
| Abstract: | The author analyzes the effects of competitive pressure on a firm's incentives to invest in product and process innovations. He presents a framework incorporating the selection and adaption effects of product market competition on efficiency and the Schumpeterian argument for monopoly power. The effects of competition on a firm's innovations depend on whether a firm is complacent, eager, struggling, or faint, which is determined by the firm's efficiency level relative to that of its opponents. |
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