Date Added: Oct 2010
The reason for contradictory predictions of the models studying the impact of competition on innovation is the varying assumptions with respect to competition or innovation type. Thus, the authors study how the impact of competition changes with different types of innovative Output. In particular, they distinguish between non-ICT - and ICT-enabled product and process innovations. To allow for such flexibility, they apply Bayesian inference techniques and use direct measures of innovative that control for the heterogeneity of innovation Output. The analysis provides evidence that supports the hypothesis that the effect of market competition on innovation is not alike for all types of innovation.