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June 30, 2023

David J. Teece: “Dynamic Competition, Organizational Capabilities, and M&A: A Short Synopsis”

Competition increases when rivalry incentivizes firms to adopt more “efficient “practices. However, performing a fixed set of activities more efficiently only facilitates “static” competition. Absent significant innovation, efficiency augmenting rivalry does not and cannot deliver significant welfare improvements. A more powerful force of economic growth and productivity comes from dynamic competition through innovation and entrepreneurial...
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