We offer new evidence on the relationship between competition and innovation that overcomes two measurement difficulties compromising the extant literature: aggregation at either firm level (or higher) of innovative activity, and the mediating influence of distance-to-technological-frontier. FDA awards of Breakthrough Therapy Designations (BTDs) on specific drugs, instrument stochastic unleveling of therapeutic (i.e., product) markets. Rivals’ innovative responses generally show an inverted-U pattern in ex ante competitiveness of the shocked market. However, the shape of the relation changes with distance to technological frontier in that market, proxied by whether the rival project uses one of the technologies embedded in the BTD-awarded drug. (JEL L65, D25, O31, O32, D4)

中文翻译：

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重新审视竞争和创新：项目级视图


我们提供了关于竞争与创新之间关系的新证据，克服了影响现有文献的两个测量难题：创新活动在公司层面（或更高级别）的聚集，以及与技术前沿距离的中介影响。FDA 授予特定药物突破性疗法认定 （BTD），治疗（即产品）市场的工具随机失衡。竞争对手的创新反应通常显示出在受冲击市场的赛前竞争力中呈倒 U 型。然而，这种关系的形状会随着与该市场技术前沿的距离而变化，这取决于竞争对手的项目是否使用了 BTD 获奖药物中嵌入的技术之一。（JEL L65、D25、O31、O32、D4）