Work

Can Small Firms Innovate Away From Competition?

Year: 2025

Type: article

Abstract: In this paper we test whether innovation allows entrepreneurs to navigate their way out of highly competitive markets into calmer waters where competitive pressures are reduced. In doing so, we establish three key findings: first, in line with the Schumpeterian creative destruction theory, our results document a decreasing marginal effect of prior innovation on consecutive perceived competition, an effect that is stronger for small firms operating in more competitive markets; then, we highlight the different synergistic effects generated by the complementarity between tangible and intangible innovation activities in competitive and oligopolistic markets that support the Schumpeterian view; finally, we establish that such synergies have proven crucial in navigating out of the COVID‐19 pandemic.

Source: British Journal of Management

DOI: 10.1111/1467-8551.12913

Authors: Marc Cowling, Alex Sclip, Giulio Velliscig

Institutions: Oxford Brookes University, University of Verona, University of Udine

Language: English

Topic: Firm Innovation and Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,900