may even reduce welfare. The reason is that it crowds out proprietary innovation which on net may reduce total innovation … in the long run. These effects would be reinforced if philanthropical innovation diverted people from other productive …

This paper studies the effect of competition on firm innovation by developing a discrete-time endogenous growth model … where multi-product firms do two types of innovation subject to friction in technology spillovers. Firms improve their … existing products through internal innovation while entering others' product markets through external innovation. We introduce …