The Causal Effects of Competition on Innovation: Experimental Evidence
1
PSE -
Paris School of Economics
2 PJSE - Paris Jourdan Sciences Economiques
3 Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
4 ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
5 University of Cologne
6 UNIFR - Université de Fribourg = University of Fribourg
2 PJSE - Paris Jourdan Sciences Economiques
3 Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
4 ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
5 University of Cologne
6 UNIFR - Université de Fribourg = University of Fribourg
Résumé
We design two laboratory experiments to analyze the causal effects of competition on step-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by the ex post rents for firms that operate at the same technological level, that is, for neck-and-neck firms. First, we find that increased competition leads to a significant increase in R&D investments by neck-and-neck firms. Second, increased competition decreases R&D investments by firms that are lagging behind, in particular if the time horizon is short. Third, we find that increased competition affects industry composition by reducing the fraction of sectors where firms are neck-and-neck. All these results are consistent with the predictions of step-by-step innovation models.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
The Causal Effects of Competition on Innovation: Experimental Evidence
|
Résumé |
en
We design two laboratory experiments to analyze the causal effects of competition on step-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by the ex post rents for firms that operate at the same technological level, that is, for neck-and-neck firms. First, we find that increased competition leads to a significant increase in R&D investments by neck-and-neck firms. Second, increased competition decreases R&D investments by firms that are lagging behind, in particular if the time horizon is short. Third, we find that increased competition affects industry composition by reducing the fraction of sectors where firms are neck-and-neck. All these results are consistent with the predictions of step-by-step innovation models.
|
Auteur(s) |
Philippe Aghion
1, 2, 3
, Stefan Bechtold
4
, Lea Cassar
5
, Holger Herz
6
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PJSE -
Paris Jourdan Sciences Economiques
( 1171428 )
- 48 boulevard Jourdan 75014 Paris
- France
3
Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
( 1043633 )
- 11 place Marcelin Berthelot F-75231 Paris Cedex 05
- France
4
ETH Zürich -
Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
( 180925 )
- Hauptgebäude, Rämistrasse 101, 8092 Zürich
- Suisse
5
University of Cologne
( 465309 )
- Albertus-Magnus-Platz, 50923 Köln
- Allemagne
6
UNIFR -
Université de Fribourg = University of Fribourg
( 473775 )
- Av. de l'Europe 20, CH-1700 Fribourg
- Suisse
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2018-05
|
Volume |
34
|
Numéro |
2
|
Domaine(s) |
|
Mots-clés (JEL) |
|
DOI | 10.1093/jleo/ewy004 |
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