1 Introduction.- 2 A Review of the Literature on Technological Competition.- 2.1 Introduction.- 2.2 One-Shot Technological Competition.- 2.2.1 The Model with Perfect Patent Protection.- 2.2.2 Endogenous Technology Choice.- 2.2.3 Post-Innovation Competition.- 2.2.4 Discussion.- 2.3 Dynamic and Multi-Stage Technological Competition.- 2.3.1 A Sequence of Drastic Innovations.- 2.3.2 Evolution of Oligopoly with Incremental Innovations.- 2.3.3 Multi-Stage Research.- 2.3.4 Discussion.- 2.4 Sequential Entry and Technology Choice from a Given Set.- 3 Sequential Innovative Entry and Endogenous Technology Choice.- 3.1 Introduction.- 3.2 Endogenous Technology Choice and Sequential Entry.- 3.2.1 Entry Decision of the Second Firm.- 3.2.2 The First-Entry Game.- 3.3 Comparative Statics.- 3.3.1 First-Mover Advantages: The Case of Strategic Complements.- 3.3.2 Second-Mover Advantages: The Case of Strategic Substitutes.- 3.3.3 Multiple Equilibria.- 3.3.4 Spillover Effects and Technology Choice.- 3.4 The Endogeneity of Competitive Structure: Mixed Games.- 3.5 Summary and Conclusion.- 4 Strategic Use of Delay and Secrecy for Rent Protection in Technological Competition.- 4.1 Introduction.- 4.2 Revelation of Information and Delay.- 4.3 Strategic Delay if the Research Technology is Random.- 4.3.1 The Investment Decision of a Single Firm.- 4.3.2 Information Revelation and Technological Competition.- 4.3.3 Equilibrium Analysis.- 4.4 Comparative Statics.- 4.5 Summary and Conclusion.- 5 Innovation under Financial Constraints.- 5.1 Introduction.- 5.2 Financial Constraints in Optimal Contracts.- 5.3 A Two-Period Model of Innovation and Competition.- 5.3.1 The Model.- 5.3.2 Equilibrium Analysis without Financial Constraints.- 5.4 Financial Constraints, Competition and Predation.- 5.4.1 The Optimal Incentive Contract.- 5.4.2 Competition and Equilibrium Predation.- 5.4.3 An Example.- 5.4.4 Precommitment through Observable Contracts.- 5.5 Summary and Conclusion.- 6 Summary and Conclusions.- A.1 Proof of Theorem 3.1.- A.2 Proof of Theorem 3.2.- A.3 Proof of Proposition 3.10.- A.4 Proof of Theorem 4.2.- A.5 Proof of Theorem 4.3.- A.6 Proof of Theorem 5.1.- References.