Innovatie en Mededinging

Op Zoek naar de Bron van Welvaart en Vooruitgang

Research output: Working paperDiscussion paperOther research output

980 Downloads (Pure)

Abstract

Competition and innovation both stimulate the development and growth of the economy. The mutual effect on prosperity and welfare growth have been researched and published extensively. The effect between innovation and competition is often overlooked and it is this very nexus that can provide us with the key to answering the following questions about welfare growth: What are the optimal levels of innovation and competition to stimulate growth? Is there an inverse U-curve present, and if so in which industries and what are the corresponding optimal levels of competition and innovation in those sectors? The Roman Empire was able to dictate and control the world for many centuries because they understood the relationship between innovation, gaining a competitive edge and success. The innovations ranging from battlefield ‘eagles’ to the first armoured unit to the invention of the scutum all helped to maintain an advantage that allowed them separate themselves from the masses. Translating this to todays’ world we can see that the essence of competition and innovation have not changed, still both are needed to optimize a welfare enhancing environment in today’s business world. Schumpeter’s early work (mark I&II) both examined the relationship between innovation and competition. These findings were used by Aghion to further investigate the relationship between innovation and competition to see whether an inverse U-curve is indeed apparent in the UK. In this paper Brouwer outlines the methodological weaknesses in the works presented by Aghion et all and proposes new indicators to more accurately estimate an econometric model, which will enhance the validity and give policy makers a more profound judgement to base future policies on.
Original languageDutch
Place of PublicationTilburg
PublisherTILEC
Number of pages55
Volume2007-021
Publication statusPublished - 2007

Publication series

NameTILEC Discussion Paper
Volume2007-021

Keywords

  • Innovation
  • competition
  • innovation & competition
  • inverse U-curve
  • chumpeter
  • Brouwer

Cite this

Brouwer, E. (2007). Innovatie en Mededinging: Op Zoek naar de Bron van Welvaart en Vooruitgang. (TILEC Discussion Paper; Vol. 2007-021). Tilburg: TILEC.
@techreport{02c550646d6540b19eef4136e848a868,
title = "Innovatie en Mededinging: Op Zoek naar de Bron van Welvaart en Vooruitgang",
abstract = "Competition and innovation both stimulate the development and growth of the economy. The mutual effect on prosperity and welfare growth have been researched and published extensively. The effect between innovation and competition is often overlooked and it is this very nexus that can provide us with the key to answering the following questions about welfare growth: What are the optimal levels of innovation and competition to stimulate growth? Is there an inverse U-curve present, and if so in which industries and what are the corresponding optimal levels of competition and innovation in those sectors? The Roman Empire was able to dictate and control the world for many centuries because they understood the relationship between innovation, gaining a competitive edge and success. The innovations ranging from battlefield ‘eagles’ to the first armoured unit to the invention of the scutum all helped to maintain an advantage that allowed them separate themselves from the masses. Translating this to todays’ world we can see that the essence of competition and innovation have not changed, still both are needed to optimize a welfare enhancing environment in today’s business world. Schumpeter’s early work (mark I&II) both examined the relationship between innovation and competition. These findings were used by Aghion to further investigate the relationship between innovation and competition to see whether an inverse U-curve is indeed apparent in the UK. In this paper Brouwer outlines the methodological weaknesses in the works presented by Aghion et all and proposes new indicators to more accurately estimate an econometric model, which will enhance the validity and give policy makers a more profound judgement to base future policies on.",
keywords = "Innovation, competition, innovation & competition, inverse U-curve, chumpeter, Brouwer",
author = "E. Brouwer",
note = "Pagination: 55",
year = "2007",
language = "Dutch",
volume = "2007-021",
series = "TILEC Discussion Paper",
publisher = "TILEC",
type = "WorkingPaper",
institution = "TILEC",

}

Brouwer, E 2007 'Innovatie en Mededinging: Op Zoek naar de Bron van Welvaart en Vooruitgang' TILEC Discussion Paper, vol. 2007-021, TILEC, Tilburg.

Innovatie en Mededinging : Op Zoek naar de Bron van Welvaart en Vooruitgang. / Brouwer, E.

Tilburg : TILEC, 2007. (TILEC Discussion Paper; Vol. 2007-021).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Innovatie en Mededinging

T2 - Op Zoek naar de Bron van Welvaart en Vooruitgang

AU - Brouwer, E.

N1 - Pagination: 55

PY - 2007

Y1 - 2007

N2 - Competition and innovation both stimulate the development and growth of the economy. The mutual effect on prosperity and welfare growth have been researched and published extensively. The effect between innovation and competition is often overlooked and it is this very nexus that can provide us with the key to answering the following questions about welfare growth: What are the optimal levels of innovation and competition to stimulate growth? Is there an inverse U-curve present, and if so in which industries and what are the corresponding optimal levels of competition and innovation in those sectors? The Roman Empire was able to dictate and control the world for many centuries because they understood the relationship between innovation, gaining a competitive edge and success. The innovations ranging from battlefield ‘eagles’ to the first armoured unit to the invention of the scutum all helped to maintain an advantage that allowed them separate themselves from the masses. Translating this to todays’ world we can see that the essence of competition and innovation have not changed, still both are needed to optimize a welfare enhancing environment in today’s business world. Schumpeter’s early work (mark I&II) both examined the relationship between innovation and competition. These findings were used by Aghion to further investigate the relationship between innovation and competition to see whether an inverse U-curve is indeed apparent in the UK. In this paper Brouwer outlines the methodological weaknesses in the works presented by Aghion et all and proposes new indicators to more accurately estimate an econometric model, which will enhance the validity and give policy makers a more profound judgement to base future policies on.

AB - Competition and innovation both stimulate the development and growth of the economy. The mutual effect on prosperity and welfare growth have been researched and published extensively. The effect between innovation and competition is often overlooked and it is this very nexus that can provide us with the key to answering the following questions about welfare growth: What are the optimal levels of innovation and competition to stimulate growth? Is there an inverse U-curve present, and if so in which industries and what are the corresponding optimal levels of competition and innovation in those sectors? The Roman Empire was able to dictate and control the world for many centuries because they understood the relationship between innovation, gaining a competitive edge and success. The innovations ranging from battlefield ‘eagles’ to the first armoured unit to the invention of the scutum all helped to maintain an advantage that allowed them separate themselves from the masses. Translating this to todays’ world we can see that the essence of competition and innovation have not changed, still both are needed to optimize a welfare enhancing environment in today’s business world. Schumpeter’s early work (mark I&II) both examined the relationship between innovation and competition. These findings were used by Aghion to further investigate the relationship between innovation and competition to see whether an inverse U-curve is indeed apparent in the UK. In this paper Brouwer outlines the methodological weaknesses in the works presented by Aghion et all and proposes new indicators to more accurately estimate an econometric model, which will enhance the validity and give policy makers a more profound judgement to base future policies on.

KW - Innovation

KW - competition

KW - innovation & competition

KW - inverse U-curve

KW - chumpeter

KW - Brouwer

M3 - Discussion paper

VL - 2007-021

T3 - TILEC Discussion Paper

BT - Innovatie en Mededinging

PB - TILEC

CY - Tilburg

ER -