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


  • Sanghoon Ahn


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 ...

Suggested Citation

  • Sanghoon Ahn, 2002. "Competition, Innovation and Productivity Growth: A Review of Theory and Evidence," OECD Economics Department Working Papers 317, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:317-en

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    competition; concurrence; croissance; growth; innovation; innovation; market structure; productivity; productivité; regulatory reforms; réforme de la réglementation; structure de marché;

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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