Competition and Innovation in Markets for Technology

• 成果类型: Article
• 署名作者: de Bettignies, Jean-Etienne; Liu, Hua Fang; Robinson, David T.; Gainulline, Bulat
• 署名单位: Kean University; Duke University; National Bureau of Economic Research
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2022.4574
• 发表日期: 2023
• 页码: 4753-4773
• 关键词: competition; Licensing; INNOVATION; import tariffs

摘要

We examine the impact of product market competition on innovation in markets for technology. An innovator makes an investment in quality-improving innovation that can be licensed to one (targeted licensing) or all (market-wide licensing) product market competitors. Our model points to a U-shaped relationship between competition in licensee product markets and innovation in the market for technology: at low levels of competition, market-wide licensing is optimal, and competition reduces innovation, whereas at high levels of competition, targeted licensing is optimal and competition increases innovation. Our empirical analysis using a large panel of U.S. data provides clear support for these predictions linking competition, innovation, and licensing.