This paper analyses the relationship between past innovation output, competition, and future innovation input in a … dynamic econometric setting. We distinguish two dimensions of competition that correspond to the concepts of product …

competition, based on firm-level panel data for the period 1996-2008. In a dynamic setting of the empirical model it turns out … that persistence is strongly related to market competition (measured by the number of principal competitors). Persistence … coordination between competition policy and innovation promotion policy, since the former basically aims at larger markets with …