We experimentally investigate competition in innovation in a patent race scenario. Pairs of subjects compete as seller firms on a duopoly market, engaging in risky search investments. Successful innovation is rewarded through temporary monopoly rents. Throughout the interaction, subjects receive...

For given product specifications by two competing firms the demand levels are determined by a randomly generated ideal composition of aspects. Firms can vary some demand. Although the product space is much too large to be explored systematically, we expect (and test for) rather reasonable...

In an experimental setting, firms in a duopoly market engage in a patent tournamentand compete for profit-enhancing product advancements. The firms generateincome by matching exogenously defined demand preferences with an appropriatelycomposed product portfolio of their own. Demand preferences...