[RussianCow]

> My question is is better for innovation if two companies have equal market share or if one has a smaller market share?

If that's your question, then the answer is obvious, isn't it? The higher the potential reward, the more motivation to innovate. If you only control 1% of the market, innovating might easily mean a 1000% growth of your company; but if you already own half, the best you can possibly do is double that. The upside just isn't there to justify big, risky plays.

That said, there is always a desire to grow, even if not by as much, so there is still incentive to not become stagnant and to continue making improvements to your products, even if marginal.

[yumario]

Yeah, when threadripper came out I believe it offered the same performance as intel I9 for about half the price. Why did AMD choose such aggressive pricing? Because they have the desire to grow. If Intel and AMD had the same market it would not make sense to put out a product for half the price as your competitor. So if Intel and AMD had the same share, we would probably still paying 1000+ dollars for intels I9.