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Service-sector competition, innovation and R&D
Stockholm School of Economics.ORCID iD: 0000-0001-9542-9106
Örebro Universitet.
2011 (English)In: Economics of Innovation and New Technology, ISSN 1043-8599, E-ISSN 1476-8364, Vol. 20, no 1, 63-88 p.Article in journal (Refereed) Published
Abstract [en]

The central prediction of the Aghion et al. (2005) model is an inverted U-shaped relation between innovation and competition. The model is built on the assumption of a product market and has not yet been empirically tested on service-sector firms. Using detailed firm-level data, we find the inverse U-shaped relation to hold for both small and large service-sector firms. However, non-exporting service firms deviate from the overall pattern. A more detailed breakdown of innovation expenditures shows that the inverse U-shaped pattern holds for both intramural R&D and training, but not for extramural R&D. Finally, as competition increases, small firms tend to seek more strategic alliances with competitors while large firms tend to decrease their collaboration with competitors. To some extent, the behavior of large firms can be due to their greater capacity to handle innovation projects internally and as competition increases, so does the payoff of an edge to competitors.

Place, publisher, year, edition, pages
2011. Vol. 20, no 1, 63-88 p.
Keyword [en]
R&D, innovation, competition, service sector
National Category
Economics Economics
Research subject
Politics, Economy and the Organization of Society; Politics, Economy and the Organization of Society
Identifiers
URN: urn:nbn:se:sh:diva-27335DOI: 10.1080/10438590903073675Scopus ID: 2-s2.0-78651361747OAI: oai:DiVA.org:sh-27335DiVA: diva2:809968
Available from: 2015-05-05 Created: 2015-05-05 Last updated: 2017-05-31Bibliographically approved

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Gustavsson Tingvall, Patrik
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CiteExportLink to record
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Cite
Citation style
  • apa
  • ieee
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  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf