Growth launched its “Southern Innovation Initiative” noting that “The South’s competitiveness relies on establishing a … culture of innovation – the ability to continuously invent and bring high value products and processes to the global … marketplace. Technology is the primary tool for innovation.” Thus, the fundamental question for the 2006 policy research project …

account firm heterogeneity. We find support for the prediction that competition has a negative effect on innovation … important channels for domestic firm innovation. We do not find support for the inverted U effect of competition on innovation …. There is partial support for the hypothesis that firms in a more pro-business environment invest more in innovation and are …

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