relationship between competition and innovation, Aghion, Dewatripont and Rey (1999) showed that this could be reversed if agency …

that influence innovation by firms and their subsequent growth. Using a dataset from a survey of nearly 4,000 firms in 24 … transition countries, we find evidence of the importance of a minimum of rivalry in both innovation and growth: the presence of … market power in product markets are utilised to undertake innovation. …