find that competition has a negative effect on innovation, especially for firms further from the efficiency frontier, and … we do not find support for an inverted U effect of competition on innovation. The authors show that the supply chain of … multinational enterprises and international trade are important channels for domestic firms' innovation. They detect no evidence …

into account firm heterogeneity. We find support for the prediction that competition has a negative effect on innovation … are important channels for domestic firm innovation. We do not find support for the inverted U effect of competition on … innovation. There is partial support for the hypothesis that firms in a more pro-business environment invest more in innovation …