Journal article
Competition and Innovation Revisited: A Project-Level View
The Review of financial studies, Vol.38(9), pp.2652-2717
09/01/2025
DOI: 10.1093/rfs/hhae078
Appears in UI Libraries Support Open Access
Abstract
We offer new evidence on the relationship between competition and innovation that overcomes two measurement difficulties compromising the extant literature: aggregation at either firm level (or higher) of innovative activity, and the mediating influence of distance-to-technological-frontier. FDA awards of Breakthrough Therapy Designations (BTDs) on specific drugs, instrument stochastic unleveling of therapeutic (i.e., product) markets. Rivals’ innovative responses generally show an inverted-U pattern in ex ante competitiveness of the shocked market. However, the shape of the relation changes with distance to technological frontier in that market, proxied by whether the rival project uses one of the technologies embedded in the BTD-awarded drug. (JEL L65, D25, O31, O32, D4)
Details
- Title: Subtitle
- Competition and Innovation Revisited: A Project-Level View
- Creators
- Jon A Garfinkel - University of IowaMosab Hammoudeh - University of New Orleans
- Resource Type
- Journal article
- Publication Details
- The Review of financial studies, Vol.38(9), pp.2652-2717
- DOI
- 10.1093/rfs/hhae078
- ISSN
- 0893-9454
- eISSN
- 1465-7368
- Publisher
- Oxford University Press; CARY
- Language
- English
- Electronic publication date
- 11/13/2024
- Date published
- 09/01/2025
- Academic Unit
- Finance
- Record Identifier
- 9984749769202771
Metrics
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