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Competition, Innovation and the Use of Innovations

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  • George Symeonidis

Abstract

I examine the effect of competition on the production and use of innovations using evidence from a natural experiment of policy reform, the introduction of cartel legislation in the U.K. in the late 1950’s. I compare manufacturing industries which had been collusive and were therefore affected by the policy with those that had been competitive and were not affected. The intensification of competition following the abolition of cartels caused a short‐run decrease in innovations produced, but had no significant effect in the long run. In contrast, innovations used increased both in the short run and in the long run.

Suggested Citation

  • George Symeonidis, 2019. "Competition, Innovation and the Use of Innovations," Journal of Industrial Economics, Wiley Blackwell, vol. 67(3-4), pages 565-592, September.
    • Handle: RePEc:bla:jindec:v:67:y:2019:i:3-4:p:565-592
    DOI: 10.1111/joie.12209
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    Cited by:

    1. Amin,Mohammad, 2021. "Does Competition from Informal Firms Impact R&D by Formal SMEs ? Evidence Using Firm-Level Survey Data," Policy Research Working Paper Series 9868, The World Bank.

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