Aghion, Philippe; Bloom, Nick; Blundell, Richard; … - In: The Quarterly Journal of Economics 120 (2005) 2, pp. 701-728
This paper investigates the relationship between product market competition and innovation. We find strong evidence of an inverted-U relationship using panel data. We develop a model where competition discourages laggard firms from innovating but encourages neck-and-neck firms to innovate....
