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Competition, Innovation and Productivity Growth: A Review of Theory and Evidence

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Author Info
Sanghoon Ahn ()
Abstract

This paper reviews recent studies on the links between competition, innovation and productivity growth in the long run. From a long-run perspective, one can see that gains from competition-enhancing regulatory reform are likely to exceed static gains observed in the short run since firms will continue to innovate in ways they would not have under regulation. By taking a dynamic perspective on competition and efficiency, one can also understand better the new modes of competition observed in “dynamically competitive” industries. This paper also attempts to cover some of relatively new research areas including: i) measuring welfare gains from product innovation; ii) competition and efficiency in e-commerce, education, and health care; and iii) interactions between product- and factor-market competition ...

La concurrence, l’innovation et la croissance de la productivité : Un examen de la théorie et des travaux empiriques

Ce papier passe en revue les résultats des études récentes sur les liens entre concurrence, innovation and croissance de la productivité à long terme. D’un point de vue de long terme, on peut observer que les gains d’une réforme de régulation qui augmente le degré de concurrence sont susceptible d’être plus grands que les gains statiques observés à court terme puisque les firmes continueront à innover d’une manière différente qu’en état réglementé. En prenant une perspective dynamique quant à la concurrence et à l’innovation, on peut également mieux comprendre les nouveaux modes de concurrence observés dans des industries « dynamiquement compétitives ». Ce papier vise également à couvrir une partie des champs de recherche relativement nouveaux y compris : i) les mesures des gains de bien-être de l’innovation des produits ; ii) la concurrence et l’efficacité dans le commerce électronique, l’éducation et le secteur de santé ; et iii) les interactions entre la concurrence sur le marché des produits et le marché des facteurs d’input ...

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 317.

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Date of creation: 17 Jan 2002
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Handle: RePEc:oec:ecoaaa:317-en

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Related research
Keywords: growth market structure structure de marché productivity productivité croissance réforme de la réglementation competition regulatory reforms innovation innovation concurrence

Find related papers by JEL classification:
D40 - Microeconomics - - Market Structure and Pricing - - - General
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

Cited by:
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  1. Alberto Bucci, 2003. "R&D, imperfect competition and growth with human capital accumulation," Departemental Working Papers 2003-11, Department of Economics University of Milan Italy. [Downloadable!]
    Other versions:
  2. Mark Rogers, 2003. "Competition, Agency and Productivity," Melbourne Institute Working Paper Series wp2003n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  3. Alberto BUCCI, 2004. "An inverted-U relationship between product market competition and growth in an extended Romerian model," Departemental Working Papers 2004-26, Department of Economics University of Milan Italy. [Downloadable!]
  4. Lewis Evans and Patrick Hughes, 2003. "Competition Policy in Small Distant Open Economies: Some Lessons from the Economics Literature," Treasury Working Paper Series 03/31, New Zealand Treasury. [Downloadable!]
  5. Sanghoon Ahn & Kyoji Fukao & Hyeog Ug Kwon, 2005. "The Internationalization and Performance of Korean and Japanese Firms: An Empirical Analysis Based on Micro-data," Discussion papers 05008, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  6. Fabio Schiantarelli, 2005. "Product Market Regulation and Macroeconomic Performance: A Review of Cross Country Evidence," IZA Discussion Papers 1791, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Loayza, Norman V. & Oviedo, Ana Maria & Serven, Luis, 2005. "Regulation and macroeconomic performance," Policy Research Working Paper Series 3469, The World Bank. [Downloadable!]
  8. Fabio Pammolli & Massimo Riccaboni & Laura Magazzini, 2007. "Who's Doing What in Pharmaceutical R&D? Model," Working Papers 2, Economics, Markets, Institutions - IMT Institutions, Markets, Technologies - Institute for Advanced Studies Lucca. [Downloadable!]
  9. François Combarnous & Yves-André Fauré, 2005. "Le dynamisme des micro, petites et moyennes entreprises (MPME). Une étude empirique de 500 unités dans l’Etat de Rio de Janeiro (Brésil)," Documents de travail 115, Centre d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
  10. Sanghoon Ahn, 2004. "Global Competition, Technology Spillovers and Firm Dynamics:," Econometric Society 2004 Far Eastern Meetings 793, Econometric Society. [Downloadable!]
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