Reflections on the Relation Between Competition and Innovation

Bondt, Raymond De; Vandekerckhove, Jan

doi:10.1007/s10842-010-0084-z

Cited by 53 publications

(17 citation statements)

References 40 publications

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“…In contrast to the well-established linear or inverted U-shaped relationships between competition and innovation found in existing studies of advanced economies (Aghion et al, 2005;De Bondt & Vandekerckhove, 2012;Polder & Veldhuizen, 2012), our study's unique focus on transition economies, and evidence of a curvilinear U-shaped relationship, implicitly highlight the importance of external resource environments and learning in shaping the relationship between competition and innovation.…”

Section: Contributions To the Literature On Competition And Innovationcontrasting

confidence: 73%

Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures

Xia

Liu

2017

J Int Bus Stud

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Section: Contributions To the Literature On Competition And Innovationcontrasting

confidence: 73%

Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures

Xia

Liu

2017

J Int Bus Stud

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“…To briefly recapitulate the individual contributions to this issue, De Bondt and Vandekerckhove (2012) start with a selective survey of the theoretical literature, modestly titled "some reflections on the relation between competition and innovation". The modesty is owed to the great number, variety and complexity of models now available, which renders a comprehensive coverage almost impossible.…”

mentioning

confidence: 99%

Competition and Innovation: Revisiting the Inverted-U Relationship

Peneder

2012

J Ind Compet Trade

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JEL classification L11 . L22 . L41 . M13 . O33This issue of the Journal of Industry, Competition, and Trade warrants some explanation in terms of a brief editorial. It presents a collection of papers that were independently submitted, but are closely related by their common interest in the question of how competition affects innovation. It is therefore not a special issue in the usual sense of an exclusive collection of invited papers, but an unusually focused issue on the topic of competition and innovation. It became possible only by an astonishing surge of renewed interest and novel research in this field.What explains the sudden explosion of new papers on a topic that has been written about so often and for so long? We have already too many papers with too many conflicting findings available, some people (editors among them) might say. In contrast, we believe that this is a good time to revisit the relationship and consider the current stream of publications to be only the beginning of a new wave of research. Our optimism is not only based on the fact that both innovation and competition are two major ingredients in any modern approach to industrial policy, 1 but also on the recognition of three powerful sources that offer new inspiration and opportunities that will continue to energize this development for some time to come.First of all, there has been a remarkable shift in the guiding theoretical hypotheses. For decades the debate was dominated by the simplistic and apparently misguided antagonism between a negative 'Schumpeter effect' versus a positive 'Arrow effect' of competition on innovation. It was simplistic by assuming that the specific arguments presented either by Schumpeter (1911Schumpeter ( , 1942 or Arrow (1962) are linear and thus apply independently of the initial degree of competition in the market. It was also misguided in two ways. First, by ignoring that Schumpeter's postulate of the logical impossibility of endogenous innovation

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“…The relationship has been frequently tested, but the results are non-conclusive and vary vastly. While decision-theoretic models that provide the starting point produce results which are consistent with the idea of an inverted-U relationship, game theoretic models deliver mixed results, depending on the specific modelling approach (De Bondt and Vandekerckhove, 2012). Empirical results generally support the hypothesis of a nonmonotonic relationship (Peneder, 2011), even though the findings about the explicit inverted-U form remain ambiguous.…”

Section: Market Competition Reduces Prices Drives Inefficient Firms mentioning

confidence: 93%

Market Competition in Transition Economies: A Literature Review

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper provides a survey of the effects of market competition in the transition economies of Eastern Europe and Central Asia. The pivotal element of the transition was inter-firm competition, which replaced economic planning as the method to identify demand. Pro-competitive policies that facilitated the transition are discussed, including international trade, attracting foreign direct investment and firm entry. Research topics with respect to competition changed as the transition advanced. The focus shifted from churn and macroeconomic shock-management in the initial phases toward firm entry, privatisation and restructuring of incumbents. In the later phases of transition, differentials in aggregate economic performance became obvious, pointing at institutional differences and their interplay with transitions. These are equally reflected by the degree of competition of the business environment. Also the methods changed with the evolution of the research agenda. Early case studies were displaced by large-scale, cross-country econometric studies as survey data became increasingly available. Early case studies were displaced by large-scale, cross-country econometric studies as survey data became increasingly available.JEL Classifications: B52, L22, L40, P30, P42.

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Reflections on the Relation Between Competition and Innovation

Cited by 53 publications

References 40 publications

Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures

Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures

Competition and Innovation: Revisiting the Inverted-U Relationship

Market Competition in Transition Economies: A Literature Review

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