The increasing commercialization of university discoveries has initiated a controversy on the impacts for future scientific research. It has been argued that an increasing orientation towards commercialization may have a negative impact on more fundamental research efforts in science. Several...

We develop a simple model of competition for the market that shows that, contrary to the Arrow view, endogenous entry threat in a market induces the average firm to invest less in R&D and the incumbent leader to invest more. We test these predictions with a Tobit model based on a unique dataset...