I re-examine the inverted-U relationship between competition and innovation (originally modeled and tested by Aghion et … between competition (as measured by the inverse of markups) and innovation (as measured by citation-weighted patents). The … competition by using a trade-weighted average of industry exchange rates as the instrument. I find a mildly negative relationship …

I re-examine the inverted-U relationship between competition and innovation (originally modeled and tested by Aghion et … competition by using various measures of foreign competition as instruments. I find a positive relationship between competition … (as measured by the inverse of markups) and innovation (as measured by citation-weighted patents). The positive …