Enhancing Product Market Payoff in Small and Medium Internet-Based Firms: A Survey-Based Analysis of Innovation and Competition Factors

Abstract

This paper aims to explore the relationship between innovation and competition and identify the conditions that affect the industry’s innovation and welfare. The authors analyze various factors, including the properties of product market payoffs, to determine whether competition increases or decreases industry innovation. The ultimate goal of this study is to provide policy recommendations that support innovation and competition.To achieve this objective, the authors conducted a survey to collect responses from industry professionals and identify the challenges that hinder innovation and competition. They examined several models and case studies,to understand how competition drives innovation. Despite the challenges, leading business consultants found that increased competition leads to higher productivity in various industries, including manufacturing and services.The study’s findings reveal that the recommended policy effectively overcomes the challenges related to innovation and competition sustainability. These findings have practical implications for regulatory organizations, highlighting the importance of adopting these policies to ensure innovation and competition for small and medium-sized internet-based firms.This paper presents a thorough examination of the correlation between innovation and competition, outlines the key elements that foster both innovation and competition, and suggests policy measures to bolster innovation and competition while improving product market outcomes.