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Competition and Innovation. Evidence in Support of the Non-linear Relationship

Sauchanka, Palina LU (2014) EKHM51 20141
Department of Economic History
Abstract
This paper empirically investigates the relationship between product market competition and innovation in seven European countries for the period 1987-2006. To approximate change in competition level three measures are considered: mark-up level, import penetration and the number of firms on the market. Innovation is measured as R&D intensity. The analysis shows that effect of product market competition on R&D intensity can be described with a non-linear function. Non-linearity signifies that when competition level is low, an increase in competition rises R&D intensity, while with higher degree of competition on the market an upsurge of competition leads to lower R&D intensity.
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author
Sauchanka, Palina LU
supervisor
organization
course
EKHM51 20141
year
type
H1 - Master's Degree (One Year)
subject
keywords
Innovation, R&D, competition
language
English
id
4467899
date added to LUP
2014-06-19 09:16:57
date last changed
2014-06-19 09:16:57
@misc{4467899,
  abstract     = {This paper empirically investigates the relationship between product market competition and innovation in seven European countries for the period 1987-2006. To approximate change in competition level three measures are considered: mark-up level, import penetration and the number of firms on the market. Innovation is measured as R&D intensity. The analysis shows that effect of product market competition on R&D intensity can be described with a non-linear function. Non-linearity signifies that when competition level is low, an increase in competition rises R&D intensity, while with higher degree of competition on the market an upsurge of competition leads to lower R&D intensity.},
  author       = {Sauchanka, Palina},
  keyword      = {Innovation,R&D,competition},
  language     = {eng},
  note         = {Student Paper},
  title        = {Competition and Innovation. Evidence in Support of the Non-linear Relationship},
  year         = {2014},
}