transition from regulation to product market competition. First, we develop a theoretical framework that models this particular … appropriation effect which has decreased innovation by 19.5 percent after deregulation, and (b) the competition effect which has … quality and generality have both declined after the introduction of downstream competition …

innovation and firm performance. Based on the industrial economics literature and the optimisation model, R&D competition, R … price and quality competition are considered. It is showed that R&D cartelisation entails a loss of firm's product … innovation compared with R&D competition. However, profit-maximising firms do not prefer the R&D competition strategy. They …