Competition, Innovation and Technology Gap

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F10%3A00044870" target="_blank" >RIV/00216224:14560/10:00044870 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Competition, Innovation and Technology Gap

Original language description

In this paper, we present a prospect theoretical model of managerial decision that explains the inverted-U relationship between competition and innovation, and the negative relationship between competition and technology gap (composition effect). If competition is high, managers prefer small innovations because they are afraid of loss (loss aversion). If competition is low, managers choose small innovations because of low value attributed to additional increase in their incomes due to successful innovation (diminishing sensitivity). Firms facing intermediate levels of competition choose larger innovations. Composition effect is a consequence of the inverted-U relationship. If competition is intense (industry firms have low profit ex-pectations), technology leaders innovate more than laggards because they are less afraid of loss, and the resulting technology gap is high.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2010

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Mathematical Methods in Economics 2010, part II

ISBN

978-80-7394-218-2

ISSN

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e-ISSN

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Number of pages

6

Pages from-to

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Publisher name

University of South Bohemia, Faculty of Economics

Place of publication

České Budějovice

Event location

České Budějovice

Event date

Jan 1, 2010

Type of event by nationality

CST - Celostátní akce

UT code for WoS article

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