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Knowledge Spillovers, Competition and Innovation Success
Author(s) -
Arvanitis Spyros,
Seliger Florian,
Woerter Martin
Publication year - 2020
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12365
Subject(s) - competitor analysis , monopolistic competition , industrial organization , sample (material) , competition (biology) , product innovation , product market , business , market share , market competition , positive relationship , product (mathematics) , economics , marketing , microeconomics , monopoly , market economy , psychology , ecology , social psychology , chemistry , geometry , mathematics , chromatography , incentive , biology
We study the relationship between a patent‐based measure of knowledge spillovers that calculates technological proximity based on technologically relevant firms and innovation success. We find – for a representative sample of Swiss firms – that knowledge spillovers have a positive and significant association with the commercial success of innovative products. The paper shows the importance of market conditions for the relationship of spillovers with innovation performance: It is only positive and significant in markets with a medium number of competitors in the main product market, but not in monopolistic or polypolistic market structures.