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The Relationship between Competition and Innovation - An Empirical Study Based on Community Innovation Survey

Pello-Esso, Wazah LU (2015) NEKN01 20151
Department of Economics
Abstract
The objective of this study is to analyse the possible relationship between competition and innovation using Statitics Sweden Community Innovation Survey 2012. The dependent variable innovation is measured in terms of expenditure on R&D and obtained numbers of patents. The independent variable competition is measured in terms of a Herfindahl-Hirschman index and two Lerner-index, one at industry level and one on firm level. The independent variables and other control variables are included in the model, which is estimated using Ordinary Least Square (OLS) and a Negative binomial regression model to estimate the impact of competition on innovation. The results of approximately 3000 firms indicate some ambiguity in the relationship between... (More)
The objective of this study is to analyse the possible relationship between competition and innovation using Statitics Sweden Community Innovation Survey 2012. The dependent variable innovation is measured in terms of expenditure on R&D and obtained numbers of patents. The independent variable competition is measured in terms of a Herfindahl-Hirschman index and two Lerner-index, one at industry level and one on firm level. The independent variables and other control variables are included in the model, which is estimated using Ordinary Least Square (OLS) and a Negative binomial regression model to estimate the impact of competition on innovation. The results of approximately 3000 firms indicate some ambiguity in the relationship between competition and innovation. However, the main conclusion of the results is a significant inverted U-shaped curve, as competition initially increases then reduces innovation. (Less)
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author
Pello-Esso, Wazah LU
supervisor
organization
course
NEKN01 20151
year
type
H1 - Master's Degree (One Year)
subject
keywords
Inverted U-shaped curve., R&D, Competition, Innovation
language
English
id
7867419
date added to LUP
2015-09-16 09:32:04
date last changed
2015-09-16 09:32:04
@misc{7867419,
  abstract     = {The objective of this study is to analyse the possible relationship between competition and innovation using Statitics Sweden Community Innovation Survey 2012. The dependent variable innovation is measured in terms of expenditure on R&D and obtained numbers of patents. The independent variable competition is measured in terms of a Herfindahl-Hirschman index and two Lerner-index, one at industry level and one on firm level. The independent variables and other control variables are included in the model, which is estimated using Ordinary Least Square (OLS) and a Negative binomial regression model to estimate the impact of competition on innovation. The results of approximately 3000 firms indicate some ambiguity in the relationship between competition and innovation. However, the main conclusion of the results is a significant inverted U-shaped curve, as competition initially increases then reduces innovation.},
  author       = {Pello-Esso, Wazah},
  keyword      = {Inverted U-shaped curve.,R&D,Competition,Innovation},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Relationship between Competition and Innovation - An Empirical Study Based on Community Innovation Survey},
  year         = {2015},
}