Competition, Innovation and Increasing Returns

George B. Richardson

Research output: Working paperResearch

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Abstract

This paper concerns the operation of competition in the presence of a high rate of innovation and increasing returns. Given free competition there is likely to exist, in this case, a tendency towards what may be called ‘dynamic equilibrium’, a tendency, that is to say, for the rate of investment in product development to rise or fall towards the level at which this investment yields only a normal return. Thus, competition, increasing returns and innovation may co-exist.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherDRUID - Danish Research Unit for Industrial Dynamics
Number of pages16
ISBN (Print)8778730104
Publication statusPublished - 1996
Externally publishedYes
SeriesDRUID Working Paper
Number96-10

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