This paper investigates the relationship between product market competition (PMC) and innovation. A Schumpeterian growth model is developed in which firms innovate ѳtep-by-stepҬ and where both technological leaders and their followers engage in R&D activities. In this model, competition...

Policy makers in Europe have been concerned that lack of product market competition have led productivity to lag behind the US. Theoretical models are ambiguous about the direction of the effect that product market competition should have on productivity. On the one hand increasing competition...

This paper examines the relationship between foreign ownership and productivity, paying particular attention to two issues neglected in the existing literature Ö the role of multinationals in service sectors and the importance of R&D activity conducted by foreign multinationals. We review...