Article

Does competition spur innovation? The case of yardstick competition

Yassine Lefouili

Résumé

This paper investigates the effect of yardstick competition on firms’ incentives to invest in cost-reducing innovations. We show that an increase in the intensity of yardstick competition, for which we provide a natural measure, increases the incentives to innovate.

Mots-clés

Competition and innovation; Yardstick competition; Cost reduction;

Codes JEL

  • D4: Market Structure and Pricing
  • L1: Market Structure, Firm Strategy, and Market Performance
  • L5: Regulation and Industrial Policy

Référence

Yassine Lefouili, « Does competition spur innovation? The case of yardstick competition », Economics Letters, Elsevier, vol. 137, décembre 2015, p. 135–139.

Voir aussi

Publié dans

Economics Letters, Elsevier, vol. 137, décembre 2015, p. 135–139