Product market competition policy and technological performance
AbstractStricter competition policy reduces expected payoffs before and after innovation, but reduces pre-innovation payoffs relatively more than post-innovation payoffs, and therefore increases the equilibrium level of R&D activity: tough product-market competition policy stimulates innovation. There is an inverted-U relationship between competition policy and expected welfare. The model also permits analysis of the effect of R&D spillovers and of alternative R&D cooperation regimes on expected welfare, on R&D efforts, and on the expected time to discovery of a cost-saving innovation.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 1998-01.
Length: 33 pages
Date of creation: Feb 1998
Date of revision:
Publication status: Published in: George Norman, Jacques-François Thisse (eds.). Market Structure and Competition Policy: Game-Theoretic Approaches. Cambridge University Press, 2000, pp 161-190
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Find related papers by JEL classification:
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin, Stephen, 1996. "R & D joint ventures and tacit product market collusion," European Journal of Political Economy, Elsevier, vol. 11(4), pages 733-741, April.
- Martin, Stephen & Scott, John T., 2000.
"The nature of innovation market failure and the design of public support for private innovation,"
Elsevier, vol. 29(4-5), pages 437-447, April.
- Stephen Martin & John T. Scott, 1999. "The Nature of Innovation Market Failure and the Design of Public Support for Private Innovation," CIE Discussion Papers 1999-02, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Stephen Martin*, 2001.
"Competition Policy for High Technology Industries,"
Journal of Industry, Competition and Trade,
Springer, vol. 1(4), pages 441-465, December.
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