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Nowadays, the concept of business model is considered as a competitive advantage because of its impact on the challenges that companies face in a changing environment. Industry structure and competitive pressures are some of the external factors that play an important role in the evolution of business model innovation and determine the company’s performance. Previous research shows different results about the relationship between competition and innovation, so some researchers describe a negative relationship and others a positive relationship between these two variables. This study aims to investigate how industry evolution and competitive pressure affect the innovation intensity of a business model. Manufacturers from the pharmaceutical and food industries were selected to investigate the hypothesis. The research model was tested using structural equation modeling and partial least squares (PLS) method. The results show that innovation intensity differs among industries that undergo different evolution. Moreover, the results have shown a positive relationship between competitive pressure and innovation intensity.

This study aims to understand how corporate innovation is influenced by industry peers. Using panel data of Chinese listed firms from 2004 to 2019, we construct two-way fixed effect models to examine the peer effects in corporate innovation and the role of analyst coverage. The findings indicate a positive relationship between corporate innovation and industry-peer innovation. Under competitive pressure within the industry, firms tend to make similar innovation decisions to maintain their competitive advantage. Additionally, analyst coverage exerts pressure on firms and enhances peer effects in innovation. Using net analyst coverage as a proxy variable, we mitigate endogeneity concerns and find significant results. Finally, heterogeneity analysis shows firm size, ownership and profitability significantly influence the industry peer effect on innovation. This study clarifies the association between analyst coverage and industry peer effects in corporate innovation, offering insights for promoting and implementing innovative strategies.

A frontier-general equilibrium analysis with skill transformation evaluates the productivities of skilled and unskilled labour and potential of the Indian economy. We compare the wages of skilled and unskilled labour between 1994 and 2002 with their respective productivities over this period. Education is considered to be responsible for the skill formation over this period: the change in skilled labour supply is endogenous in the model. Compared to its productivity, skilled labour is underpaid in the initial period and overpaid in the second period. Unskilled labour is underpaid in both periods. A decomposition exercise shows that skilled labour gains from free trade, and stands to lose due to education and domestic competition in the second period. The annualized rate of return to education is between 7 and 10%. The economy operates below its potential in both periods, particularly in the second — due to trade limitations and the failure to capture the return to education. Service sectors are found to have potential to grow significantly.