to develop the innovation and the decision to introduce the new product in the market are separated. In our multi … potential innovator strategically over-invests in process innovation in order to push the potential innovator to introduce the …

innovation of its competitor in this way. Overall, total payoffs depend non-monotonously on the capacities on the established …

homogeneous product. The firms invest in production capacities and simultaneously in R&D which determines their innovation rate … the cannibalization effect gives the smaller firm a higher innovation incentive. As a logical consequence we find that the …