Does competitive pressure foster innovation? In addressing this important question, prior studies ignored a distinction … between discrete innovation aiming at entirely new technology and continuous improvement consisting of numerous incremental … innovation will lead to a much richer understanding of the interplay between firms’ incentives to innovate and competitive …

-line extension (an upgrade through innovation) before it faces generic competition. There are two types of physicians: loyal … competition ; pharmaceutical markets ; innovation … firm decides the level of innovation. In the second-stage, all firms decide sequentially their prices, with the incumbent …