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Innovation in Digital Ecosystems: Challenges and Questions for Competition Policy

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  • Frédéric Marty
  • Thierry Warin

Abstract

Digital ecosystems development is characterized by a paradox in terms of innovation. At no time in history has the pace of innovation been so fast and never before have third-party firms been able to benefit so much for their own innovations from their integration into a keystone player’s ecosystem. However, such a keystone player may be encouraged to implement non-cooperative strategies to capture the innovations developed by its own complementors. Such strategies may be detrimental to trading partners, innovation and consumers. This article aims to analyse these two possible effects of the development of digital ecosystems on innovation and to infer recommendations in terms of competition policy to counteract the detrimental effects that may result from potential unbalanced co-opetitive situations.

Suggested Citation

  • Frédéric Marty & Thierry Warin, 2020. "Innovation in Digital Ecosystems: Challenges and Questions for Competition Policy," CIRANO Working Papers 2020s-10, CIRANO.
    • Handle: RePEc:cir:cirwor:2020s-10
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    File URL: https://cirano.qc.ca/files/publications/2020s-10.pdf
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    References listed on IDEAS

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    1. Wen Wen & Feng Zhu, 2016. "How Do Complementors Respond to the Threat of Platform Owner Entry? Evidence from the Mobile App Market," Working Papers 16-10, NET Institute.
    2. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
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    5. Luis Diestre & Nandini Rajagopalan, 2012. "Are all ‘sharks’ dangerous? new biotechnology ventures and partner selection in R&D alliances," Strategic Management Journal, Wiley Blackwell, vol. 33(10), pages 1115-1134, October.
    6. Frédéric Marty & Julien Pillot, 2019. "Cooperation, Dependence and Eviction - How Platform-To-Business Relationships in Mobile Telephony Ecosystems Should Be Addressed in A Competition Law Perspective?," CIRANO Working Papers 2019s-01, CIRANO.
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    Cited by:

    1. Frédéric Marty & Thierry Warin, 2020. "Digital Platforms' Information Concentration: From Keystone Players to Gatekeepers," Working Papers hal-03086987, HAL.

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    More about this item

    Keywords

    Innovation; Competition; Digital Ecosystems; Keystone Player; Co-Opetition;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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