We propose an empirical strategy for estimating competition in innovation markets based on a model of creative-destruction. Our method relates firms’ market return on equity to information about patent citation patterns. Two innovations we introduce are using daily abnormal stock returns...

We propose an empirical strategy to estimate competition in innovation markets. Our method relates firms' market return on equity to information about patent citation patterns. Two innovations are implemented in the methodology. First is the application of daily abnormal stock returns rather...