Using data from the US automobile market, we empirically examine the link between competition and innovation … interesting market to examine the link between competition and innovation. We use firm-level time-series data over a long horizon …. Consistent with a large literature, we use patent counts as a measure of innovation. The combination of the US market's economic …

coevolution of market and network structure matter for the relationship between competition and innovation. Moreover, our model … introduce process innovations to lower their production costs. Product innovations introduce an escape-competition effect … to different levels of competition in these industries. …