IDEAS home Printed from https://ideas.repec.org/a/oup/qjecon/v94y1980i4p675-695..html
   My bibliography  Save this article

Schumpeterian Competition

Author

Listed:
  • Carl A. Futia

Abstract

This paper describes a stochastic model of the process of competition via technological innovation as it might occur within a single industry. Individual firms undertake R&D projects in the hope of acquiring a decisive competitive advantage over their rivals. But such advantages and the economic rents arising from this are only temporary; they eventually disappear in the face of imitation, entry, and innovation by other firms. At the industry's long-run equilibrium, concentration and the pace of technological innovation are jointly determined by the conditions of entry and the extent of innovative opportunity. The model implies relationships among these variables that have in fact been detected in the empirical R&D literature.

Suggested Citation

  • Carl A. Futia, 1980. "Schumpeterian Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 675-695.
    • Handle: RePEc:oup:qjecon:v:94:y:1980:i:4:p:675-695.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1885663
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrei, Daniel & Carlin, Bruce I., 2023. "Schumpeterian competition in a Lucas economy," Journal of Economic Theory, Elsevier, vol. 208(C).
    2. Pereira, Pedro, 2001. "Market power, cost reduction and consumer search," International Journal of Industrial Organization, Elsevier, vol. 19(9), pages 1457-1473, November.
    3. Milo Bianchi & Magnus Henrekson, 2005. "Is Neoclassical Economics still Entrepreneurless?," Kyklos, Wiley Blackwell, vol. 58(3), pages 353-377, July.
    4. Lambertini, Luca, 2010. "Make vs buy in a monopoly with demand or cost uncertainty," Research in Economics, Elsevier, vol. 64(2), pages 101-109, June.
    5. Teece, David J., 2010. "Technological Innovation and the Theory of the Firm," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 679-730, Elsevier.
    6. Bruce A. Kirchhoff, 1992. "Entrepreneurship's Contribution to Economics," Entrepreneurship Theory and Practice, , vol. 16(2), pages 93-112, January.
    7. Lambertini Luca, 2000. "Technology and Cartel Stability under Vertical Differentiation," German Economic Review, De Gruyter, vol. 1(4), pages 421-442, December.
    8. Tauer, Loren W., 1990. "Ex-ante Economic Assessment of Agriculture Biotechnology," Staff Papers 121528, Cornell University, Department of Applied Economics and Management.
    9. Laussel, Didier & Le Breton, Michel, 1995. "A general equilibrium theory of firm formation based on individual unobservable skills," European Economic Review, Elsevier, vol. 39(7), pages 1303-1319, August.
    10. Olga Slivko & Bernd Theilen, 2014. "Innovation or imitation? The effect of spillovers and competitive pressure on firms’ R&D strategy choice," Journal of Economics, Springer, vol. 112(3), pages 253-282, July.
    11. Richard Arena, 2017. "Schumpeter and Schumpeterians on competition: some policy implications," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 161-186, January.
    12. Lee, Chang-Yang, 2009. "Competition favors the prepared firm: Firms' R&D responses to competitive market pressure," Research Policy, Elsevier, vol. 38(5), pages 861-870, June.
    13. Beata Cialowicz, 2024. "Formal Modeling of Innovative Competition in a Production System — an Evolutionary Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7455-7474, June.
    14. Rammer, Christian & Costard, Jano & Seliger, Florian & Schubert, Torben, 2008. "Bestimmungsgründe des Innovationserfolgs von baden-württembergischen KMU," ZEW Dokumentationen 08-05, ZEW - Leibniz Centre for European Economic Research.
    15. König, Michael D. & Rogers, Tim, 2023. "Endogenous technology cycles in dynamic R&D networks," European Economic Review, Elsevier, vol. 158(C).
    16. Slivko, Olga, 2012. "Innovation strategies of German firms: The effect of competition and intellectual property protection," ZEW Discussion Papers 12-089, ZEW - Leibniz Centre for European Economic Research.
    17. Maria Elena Bontempi & Luca Lambertini & Giuseppe Parigi, 2024. "Exploring the innovative effort: duration models and heterogeneity," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(3), pages 587-656, September.
    18. Robin Boadway & Jean-François Tremblay, 2003. "Public Economics and Startup Entrepreneurs," CESifo Working Paper Series 877, CESifo.
    19. Richard Levin & Peter C. Reiss, 1984. "Tests of a Schumpeterian Model of R&D and Market Structure," NBER Chapters, in: R&D, Patents, and Productivity, pages 175-208, National Bureau of Economic Research, Inc.
    20. Raymond W. & Plotnikova T., 2015. "How does firms' perceived competition affect technological innovation in Luxembourg?," MERIT Working Papers 2015-001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    21. Chang-Yang Lee, 2003. "Firm Density and Industry R & D Intensity: Theory and Evidence," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(2), pages 139-158, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:qjecon:v:94:y:1980:i:4:p:675-695.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/qje .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.