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Competition Policy and Innovation

  • Peter Møllgaard

    (Copenhagen Business School)

  • Jo Lorentzen

    (Human Sciences Research Council, Cape Town, South Africa)

We briefly review the rationale behind technological alliances and provide a snapshot of their role in global competition, especially insofar as it is based around intellectual capital. They nicely illustrate the increased importance of horizontal agreements and thus establish the relevance of the topic. We move on to discuss the organisation of industries in a dynamic context and draw out consequences for competition policy. We conclude with an outlook on the underlying tensions between technology alliances, competition policy, and industrial policy.

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Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 2005-12.

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Length: 23 pages
Date of creation: Dec 2005
Date of revision:
Publication status: Published in: Chapter 7.1 in Patrizio Bianchi and Sandrine Labory (eds.): International Handbook on Industrial Policy, Edward Elgar, 2005.
Handle: RePEc:kud:kuieci:2005-12
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Phone: (0045) 35 32 30 54
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Web page: http://www.econ.ku.dk/cie/Email:


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  1. Narula Rajneesh & Sadowski Bert M., 1998. "Technological catch-up and strategic technology partnering in developing countries," Research Memorandum 001, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  2. Shapiro, Carl & Willig, Robert D, 1990. "On the Antitrust Treatment of Production Joint Ventures," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 113-30, Summer.
  3. repec:cup:cbooks:9780521016919 is not listed on IDEAS
  4. Teece, David J., 1992. "Competition, cooperation, and innovation : Organizational arrangements for regimes of rapid technological progress," Journal of Economic Behavior & Organization, Elsevier, vol. 18(1), pages 1-25, June.
  5. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
  6. 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.
  7. Pleatsikas, Christopher & Teece, David, 2001. "The analysis of market definition and market power in the context of rapid innovation," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 665-693, April.
  8. Michael L. Katz & Howard A. Shelanski, 2004. "Merger Policy and Innovation: Must Enforcement Change to Account for Technological Change?," NBER Working Papers 10710, National Bureau of Economic Research, Inc.
  9. Yannis Caloghirou & Stavros Ioannides & Nicholas S. Vonortas, 2003. "Research Joint Ventures," Journal of Economic Surveys, Wiley Blackwell, vol. 17(4), pages 541-570, 09.
  10. Martin, Stephen & Scott, John T., 2000. "The nature of innovation market failure and the design of public support for private innovation," Research Policy, Elsevier, vol. 29(4-5), pages 437-447, April.
  11. Zvi Griliches, 1998. "The Search for R&D Spillovers," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 251-268 National Bureau of Economic Research, Inc.
  12. Vonortas, Nicholas S. & Safioleas, Stratos P., 1997. "Strategic alliances in information technology and developing country firms: Recent evidence," World Development, Elsevier, vol. 25(5), pages 657-680, May.
  13. Dennis W. Carlton & Robert H. Gertner, 2002. "Intellectual Property, Antitrust and Strategic Behavior," NBER Working Papers 8976, National Bureau of Economic Research, Inc.
  14. Ordover, Janusz A & Willig, Robert D, 1985. "Antitrust for High-Technology Industries: Assessing Research Joint Ventures and Mergers," Journal of Law and Economics, University of Chicago Press, vol. 28(2), pages 311-33, May.
  15. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
  16. Neumann, Manfred, 1990. "Industrial policy and competition policy," European Economic Review, Elsevier, vol. 34(2-3), pages 562-567, May.
  17. Chen, Homin & Chen, Tain-Jy, 2002. "Asymmetric strategic alliances: A network view," Journal of Business Research, Elsevier, vol. 55(12), pages 1007-1013, December.
  18. repec:cup:cbooks:9780521816632 is not listed on IDEAS
  19. Audretsch, David B. & Baumol, William J. & Burke, Andrew E., 2001. "Competition policy in dynamic markets," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 613-634, April.
  20. Martin, Stephen, 2001. "Industrial Organization: A European Perspective," OUP Catalogue, Oxford University Press, number 9780198297284.
  21. Barros, Pedro P. & Cabral, Luis, 1994. "Merger policy in open economies," European Economic Review, Elsevier, vol. 38(5), pages 1041-1055, May.
  22. Kamien, Morton I & Schwartz, Nancy L, 1975. "Market Structure and Innovation: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(1), pages 1-37, March.
  23. David S. Evans & Richard Schmalensee, 2001. "Some Economic Aspects of Antitrust Analysis in Dynamically Competitive Industries," NBER Working Papers 8268, National Bureau of Economic Research, Inc.
  24. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," Working Paper Series rwp04-047, Harvard University, John F. Kennedy School of Government.
  25. Jorde, Thomas M & Teece, David J, 1990. "Innovation and Cooperation: Implications for Competition and Antitrust," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 75-96, Summer.
  26. Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April.
  27. Hobday, Mike, 1995. "East Asian latecomer firms: Learning the technology of electronics," World Development, Elsevier, vol. 23(7), pages 1171-1193, July.
  28. Nicholas S. Vonortas, 2000. "Multimarket contact and inter-firm cooperation in R&D," Journal of Evolutionary Economics, Springer, vol. 10(1), pages 243-271.
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