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Product market regulation, innovation, and distance to frontier

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Author Info

  • 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. Federico Etro, 2010. "Endogenous market structures and antitrust policy," International Review of Economics, Springer, vol. 57(1), pages 9-45, March.
  2. CIARI, Lorenzo, 2011. "Essays in Economic Policy," Open Access publications from European University Institute urn:hdl:1814/18814, European University Institute.
  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. Ledezma, Ivan, 2013. "Defensive Strategies in the Quality Ladders," Open Access publications from Université Paris-Dauphine urn:hdl:123456789/4966, Université Paris-Dauphine.
  5. Bruno Amable & Ivan Ledezma, 2013. "Export performance and product market regulation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00795316, HAL.
  6. Barbosa, Natália & Faria, Ana Paula, 2011. "Innovation across Europe: How important are institutional differences?," Research Policy, Elsevier, vol. 40(9), pages 1157-1169.
  7. repec:hal:wpaper:halshs-00586709 is not listed on IDEAS

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