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Research Diversity and Invention

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  • John T. Scott

    (Dartmouth College)

Abstract

This paper explains that when there is great uncertainty about which elements of knowledge must be combined to make an invention, the likelihood of invention increases markedly—by many orders of magnitude—when there are numerous diverse research organizations, rather than just a few. The paper examines the possibility that competition (antitrust) policy toward mergers would be improved if enforcement efforts placed more emphasis on protecting the diversity that is provided by numerous research rivals in a market.

Suggested Citation

  • John T. Scott, 2023. "Research Diversity and Invention," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 62(2), pages 179-197, March.
    • Handle: RePEc:kap:revind:v:62:y:2023:i:2:d:10.1007_s11151-022-09891-w
    DOI: 10.1007/s11151-022-09891-w
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    References listed on IDEAS

    as
    1. Robert J. Gordon, 2016. "The Rise and Fall of American Growth: The U.S. Standard of Living since the Civil War," Economics Books, Princeton University Press, edition 1, number 10544.
    2. Benjamin F. Jones, 2009. "The Burden of Knowledge and the "Death of the Renaissance Man": Is Innovation Getting Harder?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(1), pages 283-317.
    3. Nicholas Bloom & Charles I. Jones & John Van Reenen & Michael Webb, 2020. "Are Ideas Getting Harder to Find?," American Economic Review, American Economic Association, vol. 110(4), pages 1104-1144, April.
    4. Duso, Tomaso & Affeldt, Pauline & Gugler, Klaus & Piechucka, Joanna, 2021. "Assessing EU Merger Control through Compensating Efficiencies," CEPR Discussion Papers 16705, C.E.P.R. Discussion Papers.
    5. Richard R. Nelson, 1981. "Assessing Private Enterprise: An Exegesis of Tangled Doctrine," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 93-111, Spring.
    6. repec:reg:rpubli:443 is not listed on IDEAS
    7. Reda Cherif & Fuad Hasanov, 2021. "Competition, Innovation, and Inclusive Growth," IMF Working Papers 2021/080, International Monetary Fund.
    8. Jhon T. Scott & Troy J. Scott, 2014. "Innovation rivalry: theory and empirics," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2014(1), pages 25-53.
    9. Pollok, Patrick & Amft, André & Diener, Kathleen & Lüttgens, Dirk & Piller, Frank T., 2021. "Knowledge diversity and team creativity: How hobbyists beat professional designers in creating novel board games," Research Policy, Elsevier, vol. 50(8).
    10. Link, Albert N. & Scott, John T., 2001. "Public/private partnerships: stimulating competition in a dynamic market," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 763-794, April.
    11. Albert N. Link & John T. Scott, 2021. "Technological change in the production of new scientific knowledge: a second look," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(4), pages 371-381, May.
    12. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1, May.
    13. John T. Scott, 2016. "Creativity for invention insights: corporate strategies and opportunities for public entrepreneurship," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 409-448, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Antitrust; Competition policy; Diversity; Innovation policy; Invention;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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