Peter Howitt

TL;DR: In this paper, a model of endogenous growth is developed in which vertical innovations, generated by a competitive research sector, constitute the underlying source of growth and equilibrium is determined by a forward-looking difference equation, according to which the amount of research in any period depends upon the expected amount of the research next period.

TL;DR: Aghion and Howitt make use of Schumpeter's concept of creative destruction, the competitive process whereby entrepreneurs constantly seek new ideas that will render their rivals' ideas obsolete as discussed by the authors.

TL;DR: In this article, the authors investigate the relationship between product market competition and innovation and find strong evidence of an inverted-U relationship using panel data, where competition discourages laggard firms from innovating but encourages neck-and-neck firms to innovate.

TL;DR: In this paper, the authors investigated the relationship between product market competition and innovation and found a robust inverted-U relationship between competition and patenting, and developed an endogenousm growth model with step-by-step innovation that can deliver this inverted U pattern.

TL;DR: In contrast to earlier Schumpeterian models in which innovations are always made by outsider firms who earn no rents if they fail to innovate and become monopolies if they do innovate, the authors find that the usual Schumpetersian effect of more intense product market competition is almost always outweighed by the increased incentive for firms to innovate in order to escape competition, so that PMC has a positive effect on growth.