Competition and Product Development Innovation: The Case of Newly Launched Trademarks

Posted: 15 Jul 2019

See all articles by Qianqian Huang

Qianqian Huang

City University of Hong Kong

Bin Yang

City University of Hong Kong (CityUHK)

Date Written: October 3, 2018

Abstract

This paper examines the relationship between competition and product development innovation using the U.S. trademark database. We find that greater import competition spurs corporate product innovation measured by newly-launched trademarks. However, such increase in foreign competition significantly decreases the new product trademarks survival rate. Moreover, as reflected by lower trademark diversity and more exploitation trademarks, firms tend to launch new brands in old and familiar areas in response to intensified import competition. We find similar results when using common domestic competition measures. Overall, our results suggest that competitive markets can promote product innovation.

Keywords: trademark; product market competition; import competition; innovation

JEL Classification: L10, O31, O32

Suggested Citation

Huang, Qianqian and Yang, Bin, Competition and Product Development Innovation: The Case of Newly Launched Trademarks (October 3, 2018). Available at SSRN: https://ssrn.com/abstract=3419613

Qianqian Huang

City University of Hong Kong ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong
852-3442-0284 (Fax)

Bin Yang (Contact Author)

City University of Hong Kong (CityUHK) ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

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