I analyze the effects of competition on process innovation and product introduction and obtain robust results that hold for a range of market structures and competition modes. It is found that increasing the number of firms tends to decrease cost reduction expenditure per firm, whereas...

Industrial research has come under pressure. Will recent budget cuts reduce competitiveness? Based on interviews in Japanese and European high-tech firms it is shown that research supports important potentials. These can be used for project funding, location decisions, and an analysis of...