Competition, Rivalry And Innovative Behaviour

Suma Athreye

Economics of Innovation and New Technology, 2001, vol. 10, issue 1, 1-21

Abstract: This paper is an empirical study of the importance of competition and rivalry in explaining innovative behaviour by software firms. The paper distinguishes between two notions of competition. One in which rivalry occurs due the possession of greater market power, and the other in which rivalry occurs due to diffennces in the abilities of firms. In addition the paper also decomposes changes in the extent of innovation due to the activities of firms that are innovators and due to changes in the probability of innovating. Competition always influences the extent of innovation by changing the propensity of firms to innovate.

Keywords: Determinants of innovation; Competition and innovation; Software industry; Tobit models (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (4)

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DOI: 10.1080/10438590100000001

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