I study the relationship between competition and innovation, focusing on the distinction between product and process … competition and innovation, which focused on process innovations. New products allow firms to differentiate themselves from one … another. I demonstrate that the competition level that creates the most innovation incentive is higher for process innovation …

This paper develops an innovation model where firms choose which research paths to follow. Contrary to most of the … literature which focuses only on the level of investment in innovation, this model captures both the variety of research paths … amount of duplication of research. An increase in the intensity of competition among firms leads to an increase in the …

discourages entry and reduces innovation incentives, while horizontal integration always benefits from entry and innovation …