Competition and Innovation Revisited: A Project-Level View

• 成果类型: Article
• 署名作者: Garfinkel, Jon A.; Hammoudeh, Mosab
• 署名单位: University of Iowa; University of Louisiana System; University of New Orleans
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhae078
• 发表日期: 2025
• 页码: 2652
• 关键词: research-and-development; PRODUCT MARKET REGULATION; STRATEGIC RESPONSES; import competition; entry; firm; opportunity; incentives; INCUMBENTS; threat

摘要

We offer new evidence on the relationship between competition and innovation that overcomes two measurement difficulties compromising the extant literature: aggregation at either firm level (or higher) of innovative activity, and the mediating influence of distance-to-technological-frontier. FDA awards of Breakthrough Therapy Designations (BTDs) on specific drugs, instrument stochastic unleveling of therapeutic (ie, product) markets. Rivals' innovative responses generally show an inverted-U pattern in ex ante competitiveness of the shocked market. However, the shape of the relation changes with distance to technological frontier in that market, proxied by whether the rival project uses one of the technologies embedded in the BTD-awarded drug.