Antonelli, Cristiano; Scellato, Giuseppe - In: Economics of Innovation and New Technology 20 (2011) 5, pp. 405-421
. Profitability is a reliable indicator of equilibrium conditions, far better than competition, as it integrates the effects of out …-of-equilibrium conditions in both product and factor markets. The farther the profitability from the average, the deeper the out … of a U-shaped relationship between levels of profitability and innovative activity, as measured by the rates of increase …