Innovation, merger policy and technology transfer
AbstractWe consider the interactions between innovation and merger policy under different assumptions on technology transfer. In the absence of licencing, we show that in some cases the government must commit to a permissive policy to ensure that socially desirable innovations take place, while in other cases it must commit to a prohibitive policy to deter socially wasteful innovation investments. We also find that in some circumstances the absence of any commitment is socially necessary to ensure that innovation takes place, although mergers are finally allowed. In contrast with recent literature on licensing, we show that a permissive merger policy can be optimal even if royalties and fees are available in licensing.
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Bibliographic InfoArticle provided by Fundación SEPI in its journal Investigaciones Economicas.
Volume (Year): 29 (2005)
Issue (Month): 1 (January)
Contact details of provider:
Postal: Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain
Web page: http://www.fundacionsepi.es/
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L4 - Industrial Organization - - Antitrust Issues and Policies
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
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