capability) by upgrading their technology, improving the quality of their product or service, or acquiring certification. They … find that competition has a negative effect on innovation, especially for firms further from the efficiency frontier, and … we do not find support for an inverted U effect of competition on innovation. The authors show that the supply chain of …

"Innovation is key to technology adoption and creation, and to explaining the vast differences in productivity across … and within countries. Despite the central role of the entrepreneur in the innovation process, data limitations have … restricted standard analysis of the determinants of innovation to consideration of the role of firm characteristics. The authors …