Changes in competition can affect incentives to undertake Research & Development (R&D) and to innovate. On the one hand, firms in markets characterized by high competition need to innovate to gain marginal competitive advantages to survive. On the other hand, when the level of competition is low, incufbent firms have incentives to invest in R&D to stave-off future competitors. The relationships between competition with innovation or with productivity have extensively been extensively studied and there is no consensus as to the direction of the effect.
In this setting, the workshop addressed the following questions:
- What is the overview of literature and past studies on the relationship between competition and innovation?
- What is the key role of M&A as antecedent of competition and R&D?
- Which are the effects of competition and innovation on firm's productivity?
- Which are the policy implications?