Competition and innovation: an inverted U relationship

This paper investigates the relationship between product market competition (PMC) and innovation. A Schumpeterian growth model is developed in which firms innovate ‘step-by-step’, and where both technological leaders and their followers engage in R&D activities. In this model, competition may increase the incremental profit from innovating; on the other hand, competition may also reduce innovation incentives for laggards. This model generates four main predictions which we test empirically. First, the relationship between product market competition (PMC) and innovation is an inverted U-shape: the escape competition effect dominates for low initial levels of competition, whereas the Schumpeterian effect dominates at higher levels of competition. Second, the equilibrium degree of technological ‘neck-and-neckness’ among firms should decrease with PMC. Third, the higher the average degree of ‘neck-and-neckness’ in an industry, the steeper the inverted-U relationship between PMC and innovation in that industry. Fourth, firms may innovate more if subject to higher debt-pressure, especially at lower levels of PMC. We confront these four predictions with a new panel data set on UK firms’ patenting activity at the US patenting office. The inverted U relationship, the neck and neck, and the debt pressure predictions are found to accord well with observed behavior in the data

Competition and innovation: an inverted U relationship?

This paper investigates the relationship between product market competition and innovation. It uses the radical policy reforms in the UK as instruments for changes in product market competition, and finds a robust inverted-U relationship between competition and patenting. It then develops an endogenous growth model with step-by-step innovation that can deliver this inverted-U pattern. In this model, competition has an ambiguous effect on innovation. On the one hand, it discourages laggard firms from innovating, as it reduces their rents from catching up with the leaders in the same industry. On the other hand, it encourages neck-and-neck firms to innovate in order to escape competition with their rival. The inverted-U pattern results from the interplay between these two effects, together with the effect of competition on the equilibrium industry structure. The model generates two additional predictions: on the relationship between competition and the average technological distance between leaders and followers across industries; and on the relationship between the distance of an industry to its technological frontier and the steepness of the inverted-U. Both predictions are supported by the data

Can guidelines improve referral to elective surgical specialties for adults? A systematic review

Aim To assess effectiveness of guidelines for referral for elective surgical assessment. Method Systematic review with descriptive synthesis. Data sources Medline, EMBASE, CINAHL and Cochrane database up to 2008. Hand searches of journals and websites. Selection of studies Studies evaluated guidelines for referral from primary to secondary care, for elective surgical assessment for adults. Outcome measures Appropriateness of referral (usually measured as guideline compliance) including clinical appropriateness, appropriateness of destination and of pre-referral management (eg, diagnostic investigations), general practitioner knowledge of referral appropriateness, referral rates, health outcomes and costs. Results 24 eligible studies (5 randomised control trials, 6 cohort, 13 case series) included guidelines from UK, Europe, Canada and the USA for referral for musculoskeletal, urological, ENT, gynaecology, general surgical and ophthalmological conditions. Interventions varied from complex (“one-stop shops”) to simple guidelines. Four randomized control trials reported increases in appropriateness of pre-referral care (diagnostic investigations and treatment). No evidence was found for effects on practitioner knowledge. Mixed evidence was reported on rates of referral and costs (rates and costs increased, decreased or stayed the same). Two studies reported on health outcomes finding no change. Conclusions Guidelines for elective surgical referral can improve appropriateness of care by improving prereferral investigation and treatment, but there is no strong evidence in favour of other beneficial effects

Interpretations of referral appropriateness by senior health managers in five PCT areas in England: a qualitative investigation

AIM: To explore interpretations of "appropriate" and "inappropriate" elective referral from primary to secondary surgical care among senior clinical and non-clinical managers in five purposively sampled primary care trusts (PCTs) and their main associated acute hospitals in the English National Health Service (NHS). METHODS: Semi-structured face-to-face interviews were undertaken with senior managerial staff from clinical and non-clinical backgrounds. Interviews were tape-recorded, transcribed and analysed according to the Framework approach developed at the National Centre for Social Research using N6 (NUD*IST6) qualitative data analysis software. RESULTS: Twenty-two people of 23 approached were interviewed (between three and five respondents per PCT and associated acute hospital). Three attributes relating to appropriateness of referral were identified: necessity: whether a patient with given characteristics was believed suitable for referral; destination or level: where or to whom a patient should be referred; and quality (or process): how a referral was carried out, including (eg, investigations undertaken before referral, information contained in the referral and extent of patient involvement in the referral decision. Attributes were hierarchical. "Necessity" was viewed as the most fundamental attribute, followed by "destination" and, finally, "quality". In general, but not always, all three attributes were perceived as necessary for a referral to be defined as appropriate. CONCLUSIONS: For senior clinical and non-clinical managers at the local level in the English NHS, three hierarchical attributes (necessity, appropriateness of destination and quality of referral process) contributed to the overall concept of appropriateness of referral from primary to secondary surgical care

Multiband Comparative Study of Optical Microvariability in RL vs. RQ Quasars

We present the results of an optical multi-band (BVR) photometric monitoring program of 22 core-dominated radio-loud quasars (CRLQs) and 22 radio-quiet quasars (RQQs). The aim was to compare the properties of microvariability in both types of quasars. We detected optical microvariability in 5 RQQs and 4 CRLQs. Our results confirm that microvariability in RQQs may be as frequent as in CRLQs. In addition we compare microvariability duty cycles in different bands. Finally, the implications for the origin of the microvariations are briefly discussed.Comment: 17 pages, 14 figures, Accepted for publication in the Astronomical Journa

Two-loop self-energy correction in high-Z hydrogen-like ions

A complete evaluation of the two-loop self-energy diagrams to all orders in Z\alpha is presented for the ground state of H-like ions with Z\ge 40.Comment: RevTeX, 5 figures, 1 tabl

XMM-Newton observations of the eastern jet of SS433

The radio supernova remnant W50 hosts at its center the peculiar galactic X-ray binary SS 433. It shows a central spherical structure with two `ears' which are supposed to be formed by the interaction of the precessing jets of SS 433 with the supernova shell. In two pointings in September/October 2004 for 30 ks each the eastern jet of SS 433 was observed with XMM-Newton to study the outermost parts of the `ear' and the X-ray bright emission region about 35 arcmin from SS 433. The spectra consist of two components: a non-thermal power law with photon index \Gamma ~ 2.17+/-0.02 and a thermal component at a typical temperature of kT ~ 0.3 keV. The X-ray emission seems to fill the whole interior region of the radio remnant W50. The jet terminates in the eastern `ear' in a ring-like terminal shock which indicates a flow with a kind of hollow-cone morphology. The spatial coincidence of X-ray and radio emission suggests physical conditions similar to those found at the outer shocks of ordinary supernova remnants. The bright emission region closer to SS 433 radiates non-thermally in a spatially well confined geometry at higher X-ray energies. At soft X-rays the shape of the region gets blurred, centered on the hard lenticular emission. The shape of this region and the bend in the jet propagation direction might be caused by the interaction of a re-collimated jet with the outer, non homogeneous interstellar matter distribution. The physical conditions leading to the re-collimation of the jet and the peculiar emission morphology are far from being understood and require deeper observations as well as a detailed modeling of the interaction of a jet with its surroundings.Comment: 10 pages, 8 figures, to appear in A&

Non-Collinear Ferromagnetic Luttinger Liquids

The presence of electron-electron interactions in one dimension profoundly changes the properties of a system. The separation of charge and spin degrees of freedom is just one example. We consider what happens when a system consisting of a ferromagnetic region of non-collinearity, i.e. a domain wall, is coupled to interacting electrons in one-dimension (more specifically a Luttinger liquid). The ferromagnetism breaks spin charge separation and the presence of the domain wall introduces a spin dependent scatterer into the problem. The absence of spin charge separation and the effects of the electron correlations results in very different behaviour for the excitations in the system and for spin-transfer-torque effects in this model.Comment: 6 pages, submitted to Journal of Physics: Conference Series for JEMS 201