Competition, innovation, and the effect of R&D knowledge

Abstract

This paper analyzes the effect of learning-by-doing in R&D on firms' incentives to innovate. As a benchmark without learning it is shown that relaxing the usual assumption of imposed imitation yields additional strategic effects. Therefore, the leader's R&D effort increases with the gap as she is trying to avoid competition in the future. When firms gain experience by performing R&D technological leaders rest on their laurels allowing followers to catch up. Contrary to the benchmark case, the leader's innovation effort declines with the lead. This causes an equilibrium where the incentives to innovate are highest when competition is most intense.

The Role of Cruciferous Vegetables and Isothiocyanates for Lung Cancer Prevention: Current Status, Challenges, and Future Research Directions

“…To examine potential sources of heterogeneity, we conducted a stratified meta-analysis by sex, smoking status, or both. A stronger inverse association was observed in women (summary [28,29,32,34,39,41,44,47,52,53,59,61,62]…”

“…Never smokers 13 0.80 (0.70-0.92) <0.1 0.47 [28,29,32,39,41,44,46,47,49,52,53,56,62] Past smokers 6 0.83 (0.68-1.02) 51.8 0.05 [29,32,39,41,46,56] Current smokers 6 0.94 (0.81-1.10) 34.3 0.17 [29,32,39,41,46,56]…”

“…Female never smokers 9 0.76 (0.64-0.89) <0.1 0.61 [28,29,32,39,44,47,52,53,62] Female ever smokers 3 0.91 (0.69-1.19) 54.5 0.07 [32,39,52] Geographical region Asia 8 0.76 (0.66-0.88) 29.2 0.18 [28,29,43,44,46,52,58,62] United States/Canada 10 0.82 (0.73-0.92) 46.6 0.03 [31,32,34,36,39,41,53,56,59,60] Europe 9 0.83 (0.66-1.04) 71.6 <0.001 [35,38,[47][48][49]54,57,61,107] GST genotype GSTM1 null 8 0.73 (0.53-1.01) 70.5 0.001 [33,42,50,51,[55][56][57]59] GSTM1 present 8 0.76 (0.64-0.90) <0.1 0.45 [33,42,…”

“…Study number may not add up to overall number because for overall study we used most combined risk estimates available; b) The pooling analysis [37] included five studies for the association for broccoli intake and we counted each cohort as one. Since the stratified analyses were not reported, [37] publications from each cohort reported such risk estimates [32,34] and therefore included in the stratified analysis.…”

Reflection of Industrial Structure in Innovative Capability

“…A. Schumpeter, innovations induce dynamic disequilibrium ("waves of creative destruction") as the basis for economic growth and social development, they are generally considered to be a source of competitiveness (Valenta, 2001;Dutta & Caulkin, 2007;Sabotiene, 2010;Huggins et al, 2014;Peretto, 2015;Steinmetz, 2015). Many studies argue this causation to be relevant largely for competitiveness of national as well as regional economics (Malmberg & Maskell, 2002;Grant, 1996;Tavassoli & Carbonara, 2014).…”