This paper investigates the relationship between product market competition (PMC) and innovation. A Schumpeterian … engage in R&D activities. In this model, competition may increase the incremental profit from innovating; on the other hand …, competition may also reduce innovation incentives for laggards. This model generates four main predictions which we test …

: competition, business environment, learning spillovers and human capital. Collectively, these drivers account for about a third of …

management on firm performance; (ii) a positive relationship between product market competition and average management quality … (part of which stems from the larger covariance between management with firm size as competition strengthens); and (iii) a …