explain them. We then describe a theoretical framework of endogenous markups, innovation, and competition that can potentially …

Empirical studies have uncovered an inverted-U relationship between product-market competition and innovation. This is … inconsistent with the original Schumpeterian Model, where greater competition reduces the profitability of innovation. We show that …

Using data from the US automobile market, we empirically examine the link between competition and innovation …. Consistent with a large literature, we use patent counts as a measure of innovation. The combination of the US market's economic … interesting market to examine the link between competition and innovation. We use firm-level time-series data over a long horizon …