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Concurrence et innovation en Europe. Le dilemme de la compétitivité


  • Jean-Luc Gaffard


Competition among firms as well as among countries is one of the main innovation engines. In this perspective, growth policy should be understood as the formulation and enactment of the rules that assure full competition. However, things are much more complex in reality. Innovation is a creative destruction process that implies the disruption of a given productive structure, and the construction of a new and different one. This process can succeed or fail. It brings about co-ordination problems, not only at the innovating firms? level but also in relation with the environment. Focusing on the co-ordination conditions of the out-of-equilibrium process stirred by the choice of a given technology rather than on the incentives determining this choice has paramount analytical and policy implications. Monopolist practices as well as active macroeconomic policies thus appear as necessary means to guarantee the viability of the process of change. This view calls for trade-offs between conflicting objectives. JEL Classification: L1, L03, L04.

Suggested Citation

  • Jean-Luc Gaffard, 2007. "Concurrence et innovation en Europe. Le dilemme de la compétitivité," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 353-379.
  • Handle: RePEc:cai:reofsp:reof_102_0353

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    References listed on IDEAS

    1. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
    2. Mario Amendola & Jean-Luc Gaffard & Patrick Musso, 2006. "Innovation, Productivity Gains and the Evolution of Market Structure," Revue de l'OFCE, Presses de Sciences-Po, vol. 97(5), pages 113-134.
    3. Edmund S. Phelps, 1997. "A Strategy for Employment and Growth: the Failure of Statism, Welfarism and Free Markets," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 121-128.
    4. Philippe Aghion & Ioana Marinescu, 2008. "Cyclical Budgetary Policy and Economic Growth: What Do We Learn from OECD Panel Data?," NBER Chapters,in: NBER Macroeconomics Annual 2007, Volume 22, pages 251-278 National Bureau of Economic Research, Inc.
    5. Aghion, Philippe & Banerjee, Abhijit, 2005. "Volatility and Growth," OUP Catalogue, Oxford University Press, number 9780199248612.
    6. Lancaster, Kelvin, 1975. "Socially Optimal Product Differentiation," American Economic Review, American Economic Association, vol. 65(4), pages 567-585, September.
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    More about this item


    competition; growth; innovation; viability;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance


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