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Product market regulation, innovation, and distance to frontier

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  • Bruno Amable
  • Lilas Demmou
  • Ivan Ledezma

Abstract

This article contributes to the literature on competition and innovation. It tests the impact of market regulation on innovation conditional to the closeness to the technological frontier with a panel of 15 industries for 17 OECD countries over the period 1979-2003. One of the main conclusions of this literature is that of a negative impact of regulation growing in intensity with the proximity to the frontier. A simple model of innovation and growth shows that one should not necessarily expect this result. Empirical tests on a variety of specifications show that the impact of regulation can be positive when industries are close to the technological frontier. We argue that this result is in fact line with previous evidence. Copyright 2010 , Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/icc/dtp037
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Bibliographic Info

Article provided by Oxford University Press in its journal Industrial and Corporate Change.

Volume (Year): 19 (2010)
Issue (Month): 1 (February)
Pages: 117-159

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Handle: RePEc:oup:indcch:v:19:y:2010:i:1:p:117-159

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Cited by:
  1. Ledezma, Ivan, 2013. "Defensive Strategies in the Quality Ladders," Economics Papers from University Paris Dauphine 123456789/4966, Paris Dauphine University.
  2. Federico Etro, 2010. "Endogenous market structures and antitrust policy," International Review of Economics, Springer, vol. 57(1), pages 9-45, March.
  3. Scopelliti, Alessandro Diego, 2009. "Competition and Economic Growth: an Empirical Analysis for a Panel of 20 OECD Countries," MPRA Paper 20127, University Library of Munich, Germany.
  4. Venturini, Francesco, 2012. "Looking into the black box of Schumpeterian growth theories: An empirical assessment of R&D races," European Economic Review, Elsevier, vol. 56(8), pages 1530-1545.
  5. Bruno Amable & Ivan Ledezma, 2013. "Export performance and product market regulation," Documents de travail du Centre d'Economie de la Sorbonne 13010, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  6. Bruno Amable & Ivan Ledezma & Stéphane Robin, 2014. "Product market regulation, innovation and productivity," Documents de travail du Centre d'Economie de la Sorbonne 14025, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  7. Heinz Hollenstein, 2013. "Wirtschaftliche Rahmenbedingungen als Element der Innovationspolitik," KOF Analysen, KOF Swiss Economic Institute, ETH Zurich, vol. 7(2), pages 47-55, June.
  8. Barbosa, Natália & Faria, Ana Paula, 2011. "Innovation across Europe: How important are institutional differences?," Research Policy, Elsevier, vol. 40(9), pages 1157-1169.
  9. Curzi, Daniele & Raimondi, Valentina & Olper, Alessandro, 2013. "Quality Upgrading, Competition and Trade Policy: Evidence from the Agri-Food Sector," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152386, International Agricultural Trade Research Consortium.
  10. Ledezma, Ivan, 2013. "Defensive strategies in quality ladders," Journal of Economic Dynamics and Control, Elsevier, vol. 37(1), pages 176-194.
  11. repec:hal:wpaper:halshs-00586709 is not listed on IDEAS

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