Competitive Pressure : The Effects on Investments in Product and Process Innovation  

Oleh:

Boone, Jan

Jenis: Article from Bulletin/Magazine
Dalam koleksi: The Rand Journal of Economics vol. 31 no. 3 (2000), page 549-569.
Topik: innovation; competitive pressure; investments; product; process innovation

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: RR10.4 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

I analyze the effects of competitive pressure on a firm's incentives to invest in product and process innovations. I present a framework incorporating the selection and adaptation effects of product market competition on efficiency and the Schumpeterian argument for monopoly power. The effects of competition on a firm's innovations depend on whether a firm is complacent, eager, struggling, or faint, which is determined by the firm's efficiency level relative to that of its opponents. Finally, the following tradeoff is pointed out: a rise in competitive pressure cannot raise both product and process innovations at the industry level.

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