The article explores how research and development (R&D) impacts competition between two companies selling the same product. By analyzing different scenarios, the study finds that R&D can benefit consumers and society overall. However, the effect on company profits varies depending on the type of competition. Under one type of competition, R&D boosts profits, but under another, it can actually decrease profits. This is because aggressive R&D investment can lead to lower prices, hurting the companies. Additionally, R&D widens the efficiency gap between companies in one type of competition but narrows it in the other.