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 …

innovation. We first establish a positive and significant correlation between various measures of innovativeness and top income … the number of patent per capita, innovativeness accounts on average across US states for around 17% of the total increase … in the top 1% income share between 1975 and 2010. Finally, we show that innovation does not increase broader measures of …