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Rationalizing Scherer’s prophecy of an inverted-U relationship between competition and innovation
Autori/Curatori: Philippe Aghion 
Anno di pubblicazione:  2014 Fascicolo: 1  Lingua: Italiano 
Numero pagine:  11 P. 13-23 Dimensione file:  78 KB
DOI:  10.3280/POLI2014-001002
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In this paper we develop a simple Schumpeterian growth model to rationalize the inverted-U relationship between competition and innovation uncovered by Scherer (1967). This model in turn delivers a number of testable prediction. A first testable prediction is that the relationship between competition and innovation follows an inverted- U pattern and the average technological gap within a sector increases with competition. A second prediction is that more intense competition enhances innovation in "frontier" firms but may discourage it in "non-frontier" firms. A third prediction is that there is complementarity between patent protection and product market competition in fostering innovation. More generally, recent attempts at verifying Scherer’s conjectures have given rise to a whole new trend of endogenous growth models aimed at being confronted with micro evidence.

Keywords: Distruzione creatrice, competizione, innovazione, effetto di composizione, frontiera tecnologica, leader, ritardatario
Jel Code: O10, O11, O12, O30, O31, O33, O40

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  1. Giovanni B. Ramello, Francesco Silva, History, statistics and theory: Frederic M. Scherer and modern industrial organization in ECONOMIA E POLITICA INDUSTRIALE 1/2014 pp. 5, DOI: 10.3280/POLI2014-001001

Philippe Aghion, in "ECONOMIA E POLITICA INDUSTRIALE " 1/2014, pp. 13-23, DOI:10.3280/POLI2014-001002


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