A proposal for moving from price-centric to innovation-centric competition policy, reviewing theory and evidence on … economic incentives for innovation. Competition policy and antitrust enforcement have traditionally focused on prices rather … than innovation. Economic theory shows the ways that price competition benefits consumers; and courts, antitrust agencies …

How do financial constraints influence innovative activities of firms? In a two-period model of price competition with … and might even become a monopolist in the second period of competition. If we finally assume that both firms are … financially constrained and apply for a loan at their house bank, we can show that Innovation activities are further reduced and …

capacity to handle innovation projects internally and as competition increases, so does the payoff of an edge to competitors. …The central prediction of the Aghion et al. (2005) model is an inverted U-shaped relation between innovation and … competition. The model is built on the assumption of a product market and has not yet been empirically tested on service …