Knowledge Spillovers, Competition and Innovation Success

Spyros Arvanitis, Florian Seliger and Martin Woerter

Oxford Bulletin of Economics and Statistics, 2020, vol. 82, issue 5, 1017-1041

Abstract: We study the relationship between a patent‐based measure of knowledge spillovers that calculates technological proximity based on technologically relevant firms and innovation success. We find – for a representative sample of Swiss firms – that knowledge spillovers have a positive and significant association with the commercial success of innovative products. The paper shows the importance of market conditions for the relationship of spillovers with innovation performance: It is only positive and significant in markets with a medium number of competitors in the main product market, but not in monopolistic or polypolistic market structures.

Date: 2020
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