Innovation efficiency and firm competition

Jue Liang, Lin Liu, X. Henry Wang

This paper explores the effects of innovation efficiency on technology gap and product diversity between a leading firm and its competitor. Our analysis shows some interesting results: when innovation efficiency is sufficiently large and increases, the leading firm may expand technology gap, and counter-intuitively, this may reduce its price because the leading firm will choose to reduce product diversity which intensifies price competition. We have also examined the role of innovation efficiency on consumer surplus and social welfare. Managerial implications are discussed.

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Year of publication:	2023
Authors:	Liang, Jue ; Liu, Lin ; Wang, X. Henry
Published in:	Journal of economy and technology. - Amsterdam : Elsevier B.V. on behalf of KeAi Communications Co., Ltd., ISSN 2949-9488, ZDB-ID 3188375-8. - Vol. 1.2023, p. 16-28
Subject:	Competition \| Duopoly \| Innovation efficiency \| Product diversity \| Technology gap \| Innovation \| Wettbewerb \| Duopol \| Technische Effizienz \| Technical efficiency \| Theorie \| Theory \| Technischer Fortschritt \| Technological change \| Effizienz \| Efficiency \| Produktivität \| Productivity \| Internationaler Wettbewerb \| International competition

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Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.1016/j.ject.2023.06.001 [DOI]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014555500