caa a22 4500 378936395 CHVBK 20180305123641.0 cr unu---uuuuu 161128e20040920xx s 000 0 eng 10.2202/1538-0645.1284 doi (NATIONALLICENCE)gruyter-10.2202/1538-0645.1284 A Minimum of Rivalry: Evidence from Transition Economies on the Importance of Competition for Innovation and Growth [Elektronische Daten] [Wendy Carlin, Mark Schaffer, Paul Seabright] This paper examines the importance of competition in innovation and the growth of firms. We make use of the large-scale natural experiment of the shift from an economic system without competition to a market economy to shed light on the factors that influence innovation by firms and their subsequent growth, thereby alleviating problems due to non-random clustering of innovation opportunities in mature market economies. We find evidence that monopolies innovate less and have weaker growth than firms facing a minimum of rivalry. The presence of competitors has both a direct effect on performance, and an indirect effect, through improving the efficiency with which the rents from market power in product markets are utilised to undertake innovation. There is also some less clear-cut evidence of an 'inverted-U', namely that the presence of a few rivals is more conducive to performance than the presence of many competitors. ©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston competition nationallicence productivity growth nationallicence innovation nationallicence rivalry nationallicence transition nationallicence Carlin Wendy University College London, w.carlin@ucl.ac.uk aut Schaffer Mark Heriot-Watt University, m.e.schaffer@hw.ac.uk aut Seabright Paul IDEI, University of Toulouse-1, seabrigh@cict.fr aut Contributions in Economic Analysis & Policy De Gruyter 3/1(2004-09-20) 3:1 2004 3 bejeap https://doi.org/10.2202/1538-0645.1284 text/html Onlinezugriff via DOI 1 research article jats NATIONALLICENCE 856 40 https://doi.org/10.2202/1538-0645.1284 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Carlin Wendy University College London, w.carlin@ucl.ac.uk aut NATIONALLICENCE 700 1- Schaffer Mark Heriot-Watt University, m.e.schaffer@hw.ac.uk aut NATIONALLICENCE 700 1- Seabright Paul IDEI, University of Toulouse-1, seabrigh@cict.fr aut NATIONALLICENCE 773 0- Contributions in Economic Analysis & Policy De Gruyter 3/1(2004-09-20) 3:1 2004 3 bejeap CC0 http://creativecommons.org/publicdomain/zero/1.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-gruyter