{"id":{"repo_id":"soton","oai_identifier":"oai:eprints.soton.ac.uk:192747"},"canonical_url":"https://search.dev.ndltd.org/etd/soton/oai:eprints.soton.ac.uk:192747","repository":{"repo_id":"soton","name":"University of Southampton","base_url":"https://eprints.soton.ac.uk/cgi/oai2"},"display":{"title":"Innovation & competition in a memory process","abstract":"Does innovation increase or decrease with more competition when innovation follows a memory process? This thesis provides a theoretical model which analyzes the innovation and competition relationship assuming that innovation follows a memory process, i.e. the current probability of innovation success depends on previous periods’ innovation successes. I find innovation increases with more product market competition, even under the Schumpeterian context where inventions are not completely appropriable. Assuming the probability to innovate increases with past innovations; a follower firm has large incentives to innovate, even in a highly competitive environment, since the memory obtained after innovating increases its probability to innovate again and become a leader. Therefore, industries will be most of the time neck-and-neck where firms innovate to escape from competition. I test this theoretical finding using the same dataset of Aghion et al. (2005). I find ambiguous results for the innovation-competition relationship. I show that the instrumental variables used by Aghion et al. (2005) are not exogenous and the empirical model is not stable over time. I, therefore, build a database of 220 U.S. industries to analyze the innovationcompetition relationship. As in my theoretical model, I find that innovation increases with more product market competition when innovation follows a memory process. However, when the innovation process is memoryless, I find that more competition decreases the level of innovation when industries already have a high level of competition","abstract_html":"Does innovation increase or decrease with more competition when innovation follows a memory process? This thesis provides a theoretical model which analyzes the innovation and competition relationship assuming that innovation follows a memory process, i.e. the current probability of innovation success depends on previous periods’ innovation successes. I find innovation increases with more product market competition, even under the Schumpeterian context where inventions are not completely appropriable. Assuming the probability to innovate increases with past innovations; a follower firm has large incentives to innovate, even in a highly competitive environment, since the memory obtained after innovating increases its probability to innovate again and become a leader. Therefore, industries will be most of the time neck-and-neck where firms innovate to escape from competition. I test this theoretical finding using the same dataset of Aghion et al. (2005). I find ambiguous results for the innovation-competition relationship. I show that the instrumental variables used by Aghion et al. (2005) are not exogenous and the empirical model is not stable over time. I, therefore, build a database of 220 U.S. industries to analyze the innovationcompetition relationship. As in my theoretical model, I find that innovation increases with more product market competition when innovation follows a memory process. However, when the innovation process is memoryless, I find that more competition decreases the level of innovation when industries already have a high level of competition","abstract_has_math":false,"creators":["Correa, Juan A."],"institution":"University of Southampton","degree_name":"Ph.D.","degree_level":"doctoral","degree_discipline":null,"degree_department":null,"school":null,"contributors":[],"advisors":["Ornaghi, Carmine"],"committee_chairs":[],"committee_members":[],"year":2011,"date_issued":"2011-02","date_published":"2011-02","updated_at":"2026-07-24T04:36:28Z","subjects":[],"languages":[],"rights":[],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":null,"outbound_label":null,"outbound_source":null},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor.advisor","label":"Advisor","values":["Ornaghi, Carmine"]},{"key":"dc:creator","label":"Author","values":["Correa, Juan A."]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2011-02"]},{"key":"dc:date.issued","label":"Date","values":["2011-02"]},{"key":"dc:publisher.department","label":"Dc Publisher Department","values":["Economics (pre 2011 reorg)","School of Social Sciences"]},{"key":"dc:publisher.institution","label":"Dc Publisher Institution","values":["University of Southampton"]},{"key":"dc:relation.isreferencedby","label":"Dc Relation Isreferencedby","values":["https://eprints.soton.ac.uk/192747/"]},{"key":"dc:type","label":"Dc Type","values":["Thesis"]},{"key":"dc:type.qualificationlevel","label":"Dc Type Qualificationlevel","values":["doctoral"]},{"key":"dc:type.qualificationname","label":"Dc Type Qualificationname","values":["Ph.D."]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier.uri","label":"Identifier URI","values":["https://eprints.soton.ac.uk/192747/1/Correa_2011.pdf"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["Does innovation increase or decrease with more competition when innovation follows a memory process? This thesis provides a theoretical model which analyzes the innovation and competition relationship assuming that innovation follows a memory process, i.e. the current probability of innovation success depends on previous periods’ innovation successes. I find innovation increases with more product market competition, even under the Schumpeterian context where inventions are not completely appropriable. Assuming the probability to innovate increases with past innovations; a follower firm has large incentives to innovate, even in a highly competitive environment, since the memory obtained after innovating increases its probability to innovate again and become a leader. Therefore, industries will be most of the time neck-and-neck where firms innovate to escape from competition. I test this theoretical finding using the same dataset of Aghion et al. (2005). I find ambiguous results for the innovation-competition relationship. I show that the instrumental variables used by Aghion et al. (2005) are not exogenous and the empirical model is not stable over time. I, therefore, build a database of 220 U.S. industries to analyze the innovationcompetition relationship. As in my theoretical model, I find that innovation increases with more product market competition when innovation follows a memory process. However, when the innovation process is memoryless, I find that more competition decreases the level of innovation when industries already have a high level of competition"]},{"key":"dc:format","label":"Dc Format","values":["text"]},{"key":"dc:title","label":"Title","values":["Innovation & competition in a memory process"]}]}],"canonical_facts":{"dc:contributor.advisor":["Ornaghi, Carmine"],"dc:creator":["Correa, Juan A."],"dc:date":["2011-02"],"dc:date.issued":["2011-02"],"dc:description.abstract":["Does innovation increase or decrease with more competition when innovation follows a memory process? This thesis provides a theoretical model which analyzes the innovation and competition relationship assuming that innovation follows a memory process, i.e. the current probability of innovation success depends on previous periods’ innovation successes. I find innovation increases with more product market competition, even under the Schumpeterian context where inventions are not completely appropriable. Assuming the probability to innovate increases with past innovations; a follower firm has large incentives to innovate, even in a highly competitive environment, since the memory obtained after innovating increases its probability to innovate again and become a leader. Therefore, industries will be most of the time neck-and-neck where firms innovate to escape from competition. I test this theoretical finding using the same dataset of Aghion et al. (2005). I find ambiguous results for the innovation-competition relationship. I show that the instrumental variables used by Aghion et al. (2005) are not exogenous and the empirical model is not stable over time. I, therefore, build a database of 220 U.S. industries to analyze the innovationcompetition relationship. As in my theoretical model, I find that innovation increases with more product market competition when innovation follows a memory process. However, when the innovation process is memoryless, I find that more competition decreases the level of innovation when industries already have a high level of competition"],"dc:format":["text"],"dc:identifier.uri":["https://eprints.soton.ac.uk/192747/1/Correa_2011.pdf"],"dc:publisher.department":["Economics (pre 2011 reorg)","School of Social Sciences"],"dc:publisher.institution":["University of Southampton"],"dc:relation.isreferencedby":["https://eprints.soton.ac.uk/192747/"],"dc:title":["Innovation & competition in a memory process"],"dc:type":["Thesis"],"dc:type.qualificationlevel":["doctoral"],"dc:type.qualificationname":["Ph.D."]},"updated_at":"2026-07-24T04:36:28Z"}