Drawing on data from developed and developing countries the paper applies linear feedback models to assess the relationship between competition and technological innovation. Measures are used to reflect the influence of the levels of domestic and foreign competition. Following the introduction, section 2 provides a brief outline of the relevant literature. Section 3 describes the methods and data used in the analysis. Section 4 discusses the results of using a number of variants of the linear feedback model. The final section draws conclusions.
Manchester, UK, CRC Working Paper, No. 120, 23 pp.