We investigate the empirical usefulness of a new measure of the degree of competition in a market, proposed by Boone … competition, while the new relative profits measure performs better. Using accounting data on UK firms we investigate the …

This paper investigates the relationship between product market competition and innovation. It uses the radical policy … reforms in the UK as instruments for changes in product market competition, and finds a robust inverted-U relationship between … competition and patenting. It then develops an endogenousm growth model with step-by-step innovation that can deliver this …