A Primer on the Link Between Industrial Organization and European Integration

The purpose of this paper is to introduce the section entitled "The New European Oligopoly " which focuses on the reshaping of the European economic system. The focus is primarily on the large corporations, leaving discussions related to SMEs aside. The papers referred to include: G. Dosi; T. Mayer and G. Ottaviano; M. Motta and M. Ruta; P. Santella, C. Drago, A. Polo and E. Gagliardi. The paper is organized as follows. First, we present a brief overview of industrial organization where theoretical aspects and empirical evidence have historically shaped the agenda. Secondly, we present a summary of the main achievements of European integration, (i.e., the Single Market, Monetary Union and Enlargement Towards the East). Finally, we consider the possibility that a link exists between the two and discuss the implications of this. In considering this link, the most important element of proof is the existence of a so-called "level playing field", that is, the pan-European internal market where European companies now can carry out their growth strategies. Of course, the "level playing field", combined with the euro, does not necessarily imply that all firms are on the same path. Many difference arise in terms of performance, both at the level of Member States as well as at the individual firm level. A brief example of the Italian industry is provided.