How do firms in high-income countries adjust to emerging market competition? We estimate how a representative panel of … Canadian firms adjusts innovation activities, business strategies, and exit in response to large increases in Chinese imports … between 1999 and 2005. On average, process innovation declines more strongly than product innovation. In addition, initially …

We study how competition between two downstream firms affects an upstream innovator's innovation strategy, which … upstream innovation: at low levels of competition, market-wide licensing is optimal and competition reduces innovation, while … at high levels of competition targeted licensing is optimal and competition increases innovation. Empirical analysis …

performance; (ii) a positive relationship between product market competition and average management quality (part of which stems … from the larger covariance between management with firm size as competition strengthens); and (iii) a rise in the level and …