The Nexus Between Innovation and Competition: Will the New Digital Technologies Change the Relationship?

There has been a long and extended empirical literature examining the impact of competition on innovation. I argue that as innovation is the way firms compete, this question does not make a lot of sense and it is not surprising the empirical literature has not found stable results. I argue we should be asking what affect does (digital) innovation have on the creation of new products and better processes – both of which are good for well-being. We should also be asking whether this form of inno