This paper studies the innovation dynamics of an oligopolistic industry. The firms compete not only in the output … incentives for innovation at subsequent dates. Over time the industry equilibrium approaches a steady state. The paper … characterizes the evolution of the industry's innovation behavior and its market structure on the adjustment path. …

We consider procurement of an innovation from heterogeneous sellers. Innovations are random but depend on unobservable … admission to an innovation contest. After the contest, an innovation is procured employing either a fixed prize or a first …