{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,3]],"date-time":"2026-05-03T02:32:14Z","timestamp":1777775534178,"version":"3.51.4"},"reference-count":73,"publisher":"Emerald","issue":"6","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2010,8,29]]},"abstract":"<jats:p>Abstract<\/jats:p>\n                  <jats:p>The relation between the intensity of competition and R&amp;D investment has received a lot of attention, both in the theoretical and in the empirical literature. Nevertheless, no consensus on the sign of the effect of competition on innovation has emerged. This survey of the literature identifies sources of confusion in the theoretical debate. My discussion is mainly based on a unified model that simplifies the comparison of different results. This model is also applied to show which factors work in favor of a positive relation between competition and innovation.<\/jats:p>","DOI":"10.1561\/0700000035","type":"journal-article","created":{"date-parts":[[2010,10,4]],"date-time":"2010-10-04T10:02:40Z","timestamp":1286186560000},"page":"355-428","source":"Crossref","is-referenced-by-count":29,"title":["Is Competition Good for Innovation? A Simple Approach to an Unresolved Question"],"prefix":"10.1108","volume":"5","author":[{"given":"Armin","family":"Schmutzler","sequence":"first","affiliation":[{"name":"University of Z\u00a8urich","place":["Switzerland"]}]}],"member":"140","published-online":{"date-parts":[[2010,8,29]]},"reference":[{"issue":"2","key":"2026032707334672400_ref001","first-page":"701","article-title":"Competition and innovation: An inverted-U relationship","volume":"120","author":"Aghion","year":"2005","journal-title":"Quarterly Journal of Economics"},{"issue":"1","key":"2026032707334672400_ref002","doi-asserted-by":"crossref","first-page":"20","DOI":"10.1162\/rest.91.1.20","article-title":"The effects of entry on incumbent innovation and productivity","volume":"91","author":"Aghion","year":"2009","journal-title":"Review of Economics and Statistics"},{"key":"2026032707334672400_ref003","doi-asserted-by":"crossref","first-page":"467","DOI":"10.1111\/1467-937X.00177","article-title":"Competition, imitation and growth with step-by-step innovation","volume":"68","author":"Aghion","year":"2001","journal-title":"Review of Economic Studies"},{"key":"2026032707334672400_ref004","doi-asserted-by":"crossref","first-page":"771","DOI":"10.1016\/S0014-2921(97)00036-6","article-title":"Competition and growth with step-by-step innovation: An example","volume":"41","author":"Aghion","year":"1997","journal-title":"European Economic Review"},{"key":"2026032707334672400_ref005","doi-asserted-by":"crossref","first-page":"1185","DOI":"10.2307\/2118360","article-title":"The management of innovation","volume":"109","author":"Aghion","year":"1994","journal-title":"Quarterly Journal of Economics"},{"key":"2026032707334672400_ref006","volume-title":"The Rate and Direction of Inventive Activity: Economic and Social Factors","author":"Arrow","year":"1962"},{"key":"2026032707334672400_ref007","doi-asserted-by":"crossref","first-page":"1","DOI":"10.2307\/2696395","article-title":"Investment and market dominance","volume":"32","author":"Athey","year":"2001","journal-title":"RAND Journal of Economics"},{"key":"2026032707334672400_ref008","doi-asserted-by":"crossref","first-page":"133","DOI":"10.1016\/j.jebo.2004.11.017","article-title":"Small scale entry vs. Acquisitions of small firms: Is concentration self-reinforcing?","volume":"65","author":"Aydemir","year":"2008","journal-title":"Journal of Economic Behavior & Organization"},{"key":"2026032707334672400_ref009","doi-asserted-by":"crossref","first-page":"133","DOI":"10.1016\/0022-1996(94)90061-2","article-title":"The sensitivity of strategic and corrective R&D policy in oligopolistic industries","volume":"36","author":"Bagwell","year":"1994","journal-title":"Journal of International Economics"},{"key":"2026032707334672400_ref010","volume-title":"Market Structure and Technical Change","author":"Baldwin","year":"1987"},{"key":"2026032707334672400_ref011","first-page":"32","article-title":"Multi-Period competition with Switching costs","volume":"97","author":"Beggs","year":"1992","journal-title":"Econometrica"},{"issue":"4","key":"2026032707334672400_ref012","doi-asserted-by":"crossref","first-page":"519","DOI":"10.1016\/0167-7187(93)90023-6","article-title":"The incentives for cost reduction in a differentiated industry","volume":"11","author":"Bester","year":"1993","journal-title":"International Journal of Industrial Organization"},{"key":"2026032707334672400_ref013","doi-asserted-by":"crossref","first-page":"495","DOI":"10.1016\/S0167-7187(97)00003-9","article-title":"Intensity of competition and the choice between product and process innovation","volume":"16","author":"Bonanno","year":"1998","journal-title":"International Journal of Industrial Organization"},{"issue":"3","key":"2026032707334672400_ref014","doi-asserted-by":"crossref","first-page":"549","DOI":"10.2307\/2601000","article-title":"Competitive pressure: The effects on investments in product and process innovation","volume":"31","author":"Boone","year":"2000","journal-title":"RAND Journal of Economics"},{"key":"2026032707334672400_ref015","doi-asserted-by":"crossref","first-page":"705","DOI":"10.1016\/S0167-7187(00)00090-4","article-title":"Intensity of competition and the incentive to innovate","volume":"19","author":"Boone","year":"2001","journal-title":"International Journal of Industrial Organization"},{"key":"2026032707334672400_ref016","doi-asserted-by":"crossref","first-page":"587","DOI":"10.1628\/093245608786534640","article-title":"Competition: Theoretical parameterizations and empirical measures","volume":"164","author":"Boone","year":"2008","journal-title":"Journal of Institutional and Theoretical Economics"},{"key":"2026032707334672400_ref017","first-page":"956","article-title":"Oligopoly and financial structure: The limited liability effect","volume":"76","author":"Brander","year":"1986","journal-title":"American Economic Review"},{"key":"2026032707334672400_ref018","doi-asserted-by":"crossref","first-page":"83","DOI":"10.1016\/0022-1996(85)90006-6","article-title":"Export subsidies and international market share rivalry","volume":"18","author":"Brander","year":"1987","journal-title":"Journal of International Economics"},{"key":"2026032707334672400_ref019","doi-asserted-by":"crossref","first-page":"543","DOI":"10.2307\/2298124","article-title":"A model of the evolution of duopoly: Does the asymmetry between firms tend to increase or decrease?","volume":"60","author":"Budd","year":"1993","journal-title":"Review of Economic Studies"},{"issue":"1","key":"2026032707334672400_ref020","article-title":"Asymmetric vertical integration","volume":"5","author":"Buhler","year":"2005","journal-title":"Advances in Theoretical Economics"},{"key":"2026032707334672400_ref021","doi-asserted-by":"crossref","first-page":"247","DOI":"10.1016\/j.ijindorg.2006.11.005","article-title":"Intimidating competitors \u2014 Endogenous vertical integration and downstream investment in successive oligopolies","volume":"26","author":"Buhler","year":"2008","journal-title":"International Journal of Industrial Organisation"},{"key":"2026032707334672400_ref022","doi-asserted-by":"crossref","first-page":"488","DOI":"10.1086\/261312","article-title":"Multimarket oligopoly: Strategic substitutes and complements","volume":"93","author":"Bulow","year":"1985","journal-title":"Journal of Political Economy"},{"key":"2026032707334672400_ref023","doi-asserted-by":"crossref","first-page":"471","DOI":"10.1006\/jeth.2001.2796","article-title":"Increasing dominance with no efficiency effect","volume":"102","author":"Cabral","year":"2001","journal-title":"Journal of Economic Theory"},{"key":"2026032707334672400_ref024","volume-title":"Review of Economic Studies","author":"Cabral"},{"key":"2026032707334672400_ref025","doi-asserted-by":"crossref","first-page":"1115","DOI":"10.2307\/2951509","article-title":"The Learning Curve, Market Dominance, and Predatory Pricing","volume":"62","author":"Cabral","year":"1994","journal-title":"Econometrica"},{"key":"2026032707334672400_ref026","volume-title":"Journal of Industrial Economics","author":"Chen","year":"2009"},{"key":"2026032707334672400_ref027","volume-title":"mimeo","author":"Chen","year":"2008"},{"key":"2026032707334672400_ref028","volume-title":"Handbook of the Economics of Innovation and Technological Change","author":"Cohen","year":"1995"},{"key":"2026032707334672400_ref029","volume-title":"The Handbook of Industrial Organization","author":"Cohen","year":"1989"},{"key":"2026032707334672400_ref030","volume-title":"Experimental Economics","author":"Darai","year":"2010"},{"key":"2026032707334672400_ref031","first-page":"1133","article-title":"Cooperative and noncooperative R&D in duopoly with spillovers","volume":"78","author":"D\u2019Aspremont","year":"1988","journal-title":"American Economic Review"},{"key":"2026032707334672400_ref032","doi-asserted-by":"crossref","first-page":"297","DOI":"10.1016\/0167-7187(90)90022-S","article-title":"R&D investment in a symmetric and homogeneous oligopoly: Bertrand vs. cournot","volume":"8","author":"Delbono","year":"1990","journal-title":"International Journal of Industrial Organization"},{"key":"2026032707334672400_ref033","doi-asserted-by":"crossref","first-page":"309","DOI":"10.1016\/S0165-1765(01)00555-9","article-title":"When less competition induces more product innovation","volume":"74","author":"Dubey","year":"2002","journal-title":"Economics Letters"},{"issue":"1","key":"2026032707334672400_ref034","doi-asserted-by":"crossref","first-page":"144","DOI":"10.1016\/j.jebo.2006.01.007","article-title":"An experimental test of strategic trade policy","volume":"64","author":"Engelmann","year":"2007","journal-title":"Journal of Economic Behavior and Organization"},{"key":"2026032707334672400_ref035","first-page":"927","article-title":"Equilibrium incentives in oligopoly","volume":"77","author":"Fershtman","journal-title":"American Economic Review"},{"key":"2026032707334672400_ref036","doi-asserted-by":"crossref","first-page":"1187","DOI":"10.2307\/1912178","article-title":"Industry structure and cost-reducing investment","volume":"48","author":"Flaherty","year":"1980","journal-title":"Econometrica"},{"key":"2026032707334672400_ref037","first-page":"361","article-title":"The fat-cat effect, the puppydog ploy,and the lean and hungry look","volume":"74","author":"Fudenberg","year":"1984","journal-title":"American Economic Review Papers and Proceedings"},{"issue":"4","key":"2026032707334672400_ref038","doi-asserted-by":"crossref","first-page":"624","DOI":"10.1111\/j.1465-7295.1999.tb01452.x","article-title":"An experimental investigation of research tournaments","volume":"37","author":"Fullerton","year":"1999","journal-title":"Economic Inquiry"},{"key":"2026032707334672400_ref039","doi-asserted-by":"crossref","first-page":"59","DOI":"10.1007\/s00199-001-0245-8","article-title":"Endogenous spillovers and incentives to innovate","volume":"21","author":"Gersbach","year":"2003","journal-title":"Economic Theory"},{"key":"2026032707334672400_ref040","volume-title":"Innovation Policy and Economy","author":"Gilbert","year":"2006"},{"key":"2026032707334672400_ref041","first-page":"514","article-title":"Preemptive patenting and the persistence of monopoly","volume":"72,","author":"Gilbert","year":"1982","journal-title":"American Economic Review"},{"key":"2026032707334672400_ref042","doi-asserted-by":"crossref","first-page":"285","DOI":"10.1016\/S0167-7187(96)01056-9","article-title":"Market structure, innovation and vertical product differentiation","volume":"16","author":"Greenstein","year":"1998","journal-title":"International Journal of Industrial Organization"},{"key":"2026032707334672400_ref043","doi-asserted-by":"crossref","first-page":"481","DOI":"10.1016\/j.geb.2009.02.006","article-title":"Selfreinforcing market dominance","volume":"67","author":"Halbheer","year":"2009","journal-title":"Games and Economic Behavior"},{"issue":"2","key":"2026032707334672400_ref044","doi-asserted-by":"crossref","first-page":"366","DOI":"10.2307\/3003639","article-title":"The market as an incentive mechanism","volume":"14","author":"Hart O","year":"1983","journal-title":"Bell Journal of Economics, Autumn"},{"key":"2026032707334672400_ref045","doi-asserted-by":"crossref","first-page":"350","DOI":"10.2307\/2555867","article-title":"The effects of competition on executive behavior","volume":"23","author":"Hermalin","year":"1992","journal-title":"The RAND Journal of Economics"},{"key":"2026032707334672400_ref046","doi-asserted-by":"crossref","first-page":"1","DOI":"10.2307\/1907343","article-title":"Annual survey of economic theory: The theory of monopoly","volume":"3","author":"Hicks","year":"1935","journal-title":"Econometrica"},{"key":"2026032707334672400_ref047","doi-asserted-by":"crossref","first-page":"561","DOI":"10.1016\/j.ijindorg.2003.10.005","article-title":"Strategic delegation in experimental markets","volume":"22","author":"Huck","year":"2004","journal-title":"International Journal of Industrial Organization"},{"key":"2026032707334672400_ref048","volume-title":"Market structure and innovation","author":"Kamien","year":"1982"},{"key":"2026032707334672400_ref049","volume-title":"Competitive pressure and innovation complementarities","author":"Kretschmer","year":"2008"},{"key":"2026032707334672400_ref050","first-page":"642","article-title":"Public policy towards R&D in oligopolistic industries","volume":"87","author":"Leahy","year":"1997","journal-title":"American Economic Review"},{"issue":"2","key":"2026032707334672400_ref051","doi-asserted-by":"crossref","first-page":"429","DOI":"10.2307\/1884551","article-title":"Market structure and innovation: A reformulation","volume":"94","author":"Lee","year":"1980","journal-title":"Quarterly Journal of Economics"},{"issue":"3","key":"2026032707334672400_ref052","doi-asserted-by":"crossref","first-page":"395","DOI":"10.2307\/1883165","article-title":"Market structure and innovation","volume":"93","author":"Loury","year":"1979","journal-title":"Quarterly Journal of Economics"},{"key":"2026032707334672400_ref053","doi-asserted-by":"crossref","first-page":"301","DOI":"10.1016\/0022-0531(78)90085-6","article-title":"Monopoly and product quality","volume":"18","author":"Mussa","year":"1978","journal-title":"Journal of Economic Theory"},{"issue":"4","key":"2026032707334672400_ref054","doi-asserted-by":"crossref","first-page":"724","DOI":"10.1086\/262040","article-title":"Competition and corporate performance","volume":"104","author":"Nickell","year":"1996","journal-title":"Journal of Political Economy"},{"issue":"2","key":"2026032707334672400_ref055","doi-asserted-by":"crossref","first-page":"163","DOI":"10.1016\/j.ijindorg.2003.07.003","article-title":"The limited liability effect in experimental duopoly markets","volume":"22","author":"Oechssler","year":"2004","journal-title":"International Journal of Industrial Organization"},{"key":"2026032707334672400_ref056","first-page":"301","article-title":"Patents, potential competition and technical progress","volume":"56","author":"Phillips","year":"1966","journal-title":"American Economic Review"},{"key":"2026032707334672400_ref057","doi-asserted-by":"crossref","first-page":"213","DOI":"10.1006\/jeth.1997.2270","article-title":"On the dynamic efficiency of bertrand and cournot equilibria","volume":"75","author":"Qiu","year":"1997","journal-title":"Journal of Economic Theory"},{"key":"2026032707334672400_ref058","doi-asserted-by":"crossref","first-page":"1425","DOI":"10.1257\/000282803769206395","article-title":"Competition, risk, and managerial incentives","volume":"93","author":"Raith","year":"2003","journal-title":"American Economic Review"},{"key":"2026032707334672400_ref059","volume-title":"International Journal of Industrial Organisation","author":"Sacco","year":"2010"},{"key":"2026032707334672400_ref060","doi-asserted-by":"crossref","first-page":"141","DOI":"10.2307\/3003323","article-title":"Monopolistic competition with outside good","volume":"10","author":"Salop","year":"1979","journal-title":"The Bell Journal of Economics"},{"key":"2026032707334672400_ref061","doi-asserted-by":"crossref","first-page":"191","DOI":"10.2307\/2971709","article-title":"Managerial incentives and product market competition","volume":"64","author":"Schmidt","year":"1997","journal-title":"Review of Economic Studies"},{"key":"2026032707334672400_ref062","volume-title":"\u2018The relation between competition and innovation \u2014 Why is it such a mess?\u2019","author":"Schmutzler","year":"2010"},{"key":"2026032707334672400_ref063","doi-asserted-by":"crossref","first-page":"3","DOI":"10.2307\/2297136","article-title":"Relaxing price competition through product differentiation","volume":"49","author":"Shaked","year":"1982","journal-title":"Review of Economic Studies"},{"key":"2026032707334672400_ref064","doi-asserted-by":"crossref","first-page":"546","DOI":"10.2307\/2555525","article-title":"Price and quantity competition in a differentiated duopoly","volume":"15","author":"Singh","year":"1984","journal-title":"RAND Journal of Economics"},{"key":"2026032707334672400_ref065","doi-asserted-by":"crossref","first-page":"101","DOI":"10.2307\/1911463","article-title":"Cost reduction, competition and industry performance","volume":"52","author":"Spence","year":"1984","journal-title":"Econometrica"},{"key":"2026032707334672400_ref066","doi-asserted-by":"crossref","first-page":"63","DOI":"10.1016\/j.ijindorg.2004.11.004","article-title":"Cooperative and noncooperative R&D in experimental duopoly market","volume":"23","author":"Suetens","year":"2005","journal-title":"International Journal of Industrial Organization"},{"key":"2026032707334672400_ref067","volume-title":"Sunk Costs and Market Structure: Price Competition, Advertising and the Evolution of Concentration","author":"Sutton","year":"1991"},{"key":"2026032707334672400_ref068","volume-title":"Technology and Market Structure","author":"Sutton","year":"1998"},{"key":"2026032707334672400_ref069","doi-asserted-by":"crossref","first-page":"1181","DOI":"10.1086\/424743","article-title":"Market structure and productivity: A concrete Example","volume":"112","author":"Syverson","year":"2004","journal-title":"Journal of Political Economy"},{"issue":"4","key":"2026032707334672400_ref070","first-page":"872","article-title":"Digging for golden carrots: An analysis of research tournaments","volume":"85","author":"Taylor","year":"1995","journal-title":"American Economic Review"},{"issue":"1","key":"2026032707334672400_ref071","doi-asserted-by":"crossref","DOI":"10.2202\/1935-1704.1471","article-title":"Market competition and lower tier incentives","volume":"9","author":"Theilen","year":"2009","journal-title":"The  B.E. Journal of Theoretical Economics"},{"key":"2026032707334672400_ref072","volume-title":"The theory of industrial organisation","author":"Tirole","year":"1988"},{"key":"2026032707334672400_ref073","doi-asserted-by":"crossref","first-page":"419","DOI":"10.1111\/j.1467-6451.2008.00356.x","article-title":"Innovation and competitive pressure","volume":"56","author":"Vives","year":"2008","journal-title":"Journal of Industrial Economics"}],"container-title":["Foundations and Trends\u00ae in Microeconomics"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.emerald.com\/ftmic\/article-pdf\/5\/6\/355\/11431658\/0700000035en.pdf","content-type":"application\/pdf","content-version":"vor","intended-application":"syndication"},{"URL":"https:\/\/www.emerald.com\/ftmic\/article-pdf\/5\/6\/355\/11431658\/0700000035en.pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,4,29]],"date-time":"2026-04-29T18:11:42Z","timestamp":1777486302000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.emerald.com\/ftmic\/article\/5\/6\/355\/1352871\/Is-Competition-Good-for-Innovation-A-Simple"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2010,8,29]]},"references-count":73,"journal-issue":{"issue":"6","published-print":{"date-parts":[[2010,8,29]]}},"URL":"https:\/\/doi.org\/10.1561\/0700000035","relation":{},"ISSN":["1547-9846","1547-9854"],"issn-type":[{"value":"1547-9846","type":"print"},{"value":"1547-9854","type":"electronic"}],"subject":[],"published":{"date-parts":[[2010,8,29]]}}}