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Competition and innovation: The tango of the market and technology in the competitive landscape

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  • Lihong Qian
  • I. Kim Wang

Abstract

Technology innovation can be a double‐edged sword in helping a firm to address competitive pressures. We explore the relationships among market competition, technology competition, and firms' advancement to a higher generation of production technology. Though market competition drives technology advancement as firms attempt to escape competition and technology competition also drives technology advancement as firms try to stay in the technology race, concurrent high market and technology competition lead a firm to defer advancement. We find supportive evidence with data on global flat panel display makers. Our findings shed light on how competition interacts with a firm's technology advancement decision and, in general, a firm's technology strategy.

Suggested Citation

  • Lihong Qian & I. Kim Wang, 2017. "Competition and innovation: The tango of the market and technology in the competitive landscape," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(8), pages 1237-1247, December.
    • Handle: RePEc:wly:mgtdec:v:38:y:2017:i:8:p:1237-1247
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    Cited by:

    1. Thibault Schrepel, 2024. "A systematic content analysis of innovation in European competition law," European Journal of Law and Economics, Springer, vol. 58(2), pages 355-395, October.
    2. Junwei Ma & Jianhua Wang & Philip Szmedra, 2019. "Sustainable Competitive Position of Mobile Communication Companies: Comprehensive Perspectives of Insiders and Outsiders," Sustainability, MDPI, vol. 11(7), pages 1-15, April.
    3. Jee Yong Chung & Woojin Yoon, 2020. "Technological capabilities and internationalization of high‐tech ventures: The moderating role of strategic orientations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1462-1472, December.
    4. Chandan Sharma & Ritesh Kumar Mishra, 2023. "Imports, technology, and employment: Job creation or creative destruction," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 152-170, January.

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