The document discusses the relationship between competition, innovation, and productivity. It argues that competition can drive innovation and productivity gains in several ways: 1) Intensified competition can force firms to innovate faster to avoid bankruptcy or loss of market share (Darwinian effect). 2) Competition between firms that are neck-and-neck in technology can increase incentives for each firm to gain a technological advantage (neck-and-neck effect). 3) Greater worker mobility between firms can increase the overall rate of innovation in an industry (mobility effect). 4) Competitive pressure has historically driven firms to improve production processes and achieve scale economies, increasing productivity over time.