This paper investigates the relationship between product market competition and innovation. It uses the radical policy … competition and patenting. It then develops an endogenousm growth model with step-by-step innovation that can deliver this … inverted-U pattern.In this model, competition has an ambiguous effect on innovation. On the one hand, it discourages laggard …

This paper investigates the relationship between product market competition (PMC) and innovation. A growth model is … reduce innovation incentives for laggards. There are four key predictions. First, the relationship between product market … competition (PMC) and innovation is an inverted U-shape. Second, the equilibrium degree of technological neck-and-neckness' among …