IDEAS home Printed from https://ideas.repec.org/p/rnp/wpaper/1447.html
   My bibliography  Save this paper

Competition Policy and Incentives for Innovation
[Конкурентная Политика И Стимулы К Инновационной Деятельности]

Author

Listed:
  • Shastitko. Andrey (Шаститко, Андрей)

    (Lomonossov Moscow State University, Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Komkova, Anastasia Andreevna (Комкова, Анастасия Андреевна)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Kurdin, Alexander (Курдин, Александр)

    (National Research University Higher School of Economics, Moscow State University, Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Shastitko, Anastasia (Шаститко, Анастасия)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

The work is dedicated to the identification and study of the relationship between the intensity of competition, market structures, competition policy and innovation activity. Critical analysis of foreign research shows that a universal solution, this problem has not, and the effects of competition policy on innovation in practice depends on a number of specific national and sectoral factors. Impact of innovation activity in respect of competition policy instruments is comprehensive, taking into account their impact on several aspects of the activities of businesses and entrepreneurs' expectations, as well as the availability of related markets. The paper evaluates the effects of the complex. Built in the theoretical model shows that the "inhospitable" attitude antitrust authorities to potentially anti-competitive actions of enterprises can be deterrent to innovative activity, but the rejection of antitrust measures may be harmful to consumers. The best option of competition policy seems favorable attitude towards business initiatives in the case of a likely increase their innovation potential with the simultaneous implementation of compensatory measures or protective active competition policy.

Suggested Citation

  • Shastitko. Andrey (Шаститко, Андрей) & Komkova, Anastasia Andreevna (Комкова, Анастасия Андреевна) & Kurdin, Alexander (Курдин, Александр) & Shastitko, Anastasia (Шаститко, Анастасия), 2016. "Competition Policy and Incentives for Innovation [Конкурентная Политика И Стимулы К Инновационной Деятельности]," Working Papers 1447, Russian Presidential Academy of National Economy and Public Administration.
    • Handle: RePEc:rnp:wpaper:1447
    as

    Download full text from publisher

    File URL: https://repec.ranepa.ru/rnp/wpaper/1447.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-1093, Nov.-Dec..
    2. David Encaoua & Abraham Hollander, 2002. "Competition Policy and Innovation," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 18(1), pages 63-79, Spring.
    3. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    4. Jerry R. Green & Suzanne Scotchmer, 1995. "On the Division of Profit in Sequential Innovation," RAND Journal of Economics, The RAND Corporation, vol. 26(1), pages 20-33, Spring.
    5. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    6. Jan Boone, 2000. "Competitive Pressure: The Effects on Investments in Product and Process Innovation," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 549-569, Autumn.
    7. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    8. Picard, Pierre M. & Pieretti, Patrice, 2011. "Bank secrecy, illicit money and offshore financial centers," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 942-955, August.
    9. Alberto Bisin & Thierry Verdier, 2000. ""Beyond the Melting Pot": Cultural Transmission, Marriage, and the Evolution of Ethnic and Religious Traits," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 955-988.
    10. Gilbert Richard J, 2006. "Competition and Innovation," Journal of Industrial Organization Education, De Gruyter, vol. 1(1), pages 1-23, December.
    11. Sales, J.S. & Cardoso, W.B. & Avelar, A.T. & de Almeida, N.G., 2016. "Dynamics of nonclassical correlations via local quantum uncertainty for atom and field interacting into a lossy cavity QED," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 443(C), pages 399-405.
    12. Djankov, Simeon & Glaeser, Edward & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2003. "The new comparative economics," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 595-619, December.
    13. Aiginger, Karl, 1997. "The Use of Unit Values to Discriminate between Price and Quality Competition," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(5), pages 571-592, September.
    14. Alessandro Marra & Vittorio Carlei & Anna Lisa Paglialunga, 2011. "Economic Diversity and Industry Patterns in Italian Provinces: An Empirical Analysis," L'industria, Società editrice il Mulino, issue 3, pages 419-434.
    15. Daron Acemoglu & Ufuk Akcigit, 2012. "Intellectual Property Rights Policy, Competition And Innovation," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 1-42, February.
    16. 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.
    17. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107, Elsevier.
    18. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-293, June.
    19. Bauernschuster, Stefan & Duersch, Peter & Oechssler, Jörg & Vadovic, Radovan, 2010. "Mandatory sick pay provision: A labor market experiment," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 870-877, December.
    20. Jean-Pierre Ponssard & Claude d'Aspremont & David Encaoua, 2000. "Competition policy and game theory: reflection based on the cement industry case," Post-Print hal-00365743, HAL.
    21. Encaoua, D. & Ulph, D., 2000. "Catching-up or Leapfrogging ? The Effects of Competition on Innovation and Growth," Papiers d'Economie Mathématique et Applications 2000.97, Université Panthéon-Sorbonne (Paris 1).
    22. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation, Market Structure, and Firm Size," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 2, pages 16-23, Edward Elgar Publishing.
    23. Carl Shapiro, 2001. "Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard Setting," NBER Chapters, in: Innovation Policy and the Economy, Volume 1, pages 119-150, National Bureau of Economic Research, Inc.
    24. Bhavish Jugurnath & Mark Stewart & Robert Brooks, 2008. "Dividend taxation and corporate investment: a comparative study between the classical system and imputation system of dividend taxation in the United States and Australia," Review of Quantitative Finance and Accounting, Springer, vol. 31(2), pages 209-224, August.
    25. 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.
    26. Tom Lee & Louis L. Wilde, 1980. "Market Structure and Innovation: A Reformulation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(2), pages 429-436.
    27. Ricardo J. Caballero & Adam B. Jaffe, 1993. "How High Are the Giants' Shoulders: An Empirical Assessment of Knowledge Spillovers and Creative Destruction in a Model of Economic Growth," NBER Chapters, in: NBER Macroeconomics Annual 1993, Volume 8, pages 15-86, National Bureau of Economic Research, Inc.
    28. Dirk Czarnitzki & Federico Etro & Kornelius Kraft, 2014. "Endogenous Market Structures and Innovation by Leaders: An Empirical Test," Economica, London School of Economics and Political Science, vol. 81(321), pages 117-139, January.
    29. Étienne Gilbert, 1984. "Institut de Recherche sur les Multinationales, Les multinationales en mutation," Revue Tiers Monde, Programme National Persée, vol. 25(97), pages 225-226.
    30. Neal, Larry & Garcia-Iglesias, Maria Concepcion, 2003. "The economy of Spain without and within the European Union: 1945-2002," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(5), pages 755-773.
    31. Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-595, September.
    32. Tahat, M. A. & Babus'Haq, R. F. & O'Callaghan, P. W. & Probert, S. D., 1995. "Design feasibility of an intermittent domestic energy store," Applied Energy, Elsevier, vol. 51(3), pages 277-290.
    33. Vickers, John S, 1986. "The Evolution of Market Structure When There Is a Sequence of Innovations," Journal of Industrial Economics, Wiley Blackwell, vol. 35(1), pages 1-12, September.
    34. International Monetary Fund, 1996. "Pension Reform in Belgium," IMF Working Papers 1996/074, International Monetary Fund.
    35. repec:zbw:inwedp:562014 is not listed on IDEAS
    36. Glenn C. Loury, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(3), pages 395-410.
    37. George Symeonidis, 1996. "Innovation, Firm Size and Market Structure: Schumpeterian Hypotheses and Some New Themes," OECD Economics Department Working Papers 161, OECD Publishing.
    38. Norman,George & Thisse,Jacques-François (ed.), 2000. "Market Structure and Competition Policy," Cambridge Books, Cambridge University Press, number 9780521783330, October.
    39. Kolk, Ans & Van Tulder, Rob & Westdijk, Bart, 2007. "Corrigendum to "Poverty Alleviation as Business Strategy? Evaluating Commitments of Frontrunner Multinational Corporations" [World Development 34 (2006) 789-801]," World Development, Elsevier, vol. 35(3), pages 542-541, March.
    40. Авдашева С. Б. & Шаститко А. Е., 2010. "Конкурентна Я Политика : Состав, Структура, Система 1," Современная конкуренция, CyberLeninka;Общество с ограниченной ответственностью «Синергия ПРЕСС», issue 1, pages 5-20.
    41. Arora, Ashish, 1997. "Patents, licensing, and market structure in the chemical industry," Research Policy, Elsevier, vol. 26(4-5), pages 391-403, December.
    42. Jean-Jacques Laffont & David Martimort, 1998. "Collusion and Delegation," RAND Journal of Economics, The RAND Corporation, vol. 29(2), pages 280-305, Summer.
    43. Klein, Paul & Telyukova, Irina A., 2013. "Measuring high-frequency income risk from low-frequency data," Journal of Economic Dynamics and Control, Elsevier, vol. 37(3), pages 535-542.
    44. 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.
    45. Davy Paindaveine & Rondrotiana J Rasoafaraniaina & Thomas Verdebout, 2016. "Preliminary Test Estimation for Multi-Sample Principal Components," Working Papers ECARES ECARES 2016-39, ULB -- Universite Libre de Bruxelles.
    46. Jarullah, A.T. & Mujtaba, I.M. & Wood, A.S., 2012. "Improving fuel quality by whole crude oil hydrotreating: A kinetic model for hydrodeasphaltenization in a trickle bed reactor," Applied Energy, Elsevier, vol. 94(C), pages 182-191.
    47. Di Falco, Salvatore & Chavas, Jean-Paul, 2004. "Agro-Biodiversity And Agricultural Policies In An Uncertain Environment," 2004 Annual meeting, August 1-4, Denver, CO 20420, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    48. Levin, Richard C & Cohen, Wesley M & Mowery, David C, 1985. "R&D Appropriability, Opportunity, and Market Structure: New Evidence on Some Schumpeterian Hypotheses," American Economic Review, American Economic Association, vol. 75(2), pages 20-24, May.
    49. Bendel, Daniel & Demary, Markus & Voigtländer, Michael, 2016. "Eine erste Bewertung makroprudenzieller Instrumente in der Immobilienfinanzierung," IW policy papers 8/2016, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    50. Geroski, P A, 1990. "Innovation, Technological Opportunity, and Market Structure," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 586-602, July.
    51. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
    52. Carl Shapiro, 2002. "Competition Policy and Innovation," OECD Science, Technology and Industry Working Papers 2002/11, OECD Publishing.
    53. Boone, Jan, 2001. "Intensity of competition and the incentive to innovate," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 705-726, April.
    54. Richard Gilbert, 2006. "Looking for Mr. Schumpeter: Where Are We in the Competition-Innovation Debate?," NBER Chapters, in: Innovation Policy and the Economy, Volume 6, pages 159-215, National Bureau of Economic Research, Inc.
    55. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    56. Li, Ruixue & Wang, Jiang & Yu, Haitao & Deng, Bin & Wei, Xile & Chen, Yingyuan, 2016. "Fractal analysis of the short time series in a visibility graph method," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 450(C), pages 531-540.
    57. John Clark, 2005. "Competition Advocacy: Challenges for Developing Countries," OECD Journal: Competition Law and Policy, OECD Publishing, vol. 6(4), pages 69-80.
    58. Aghion, Philippe & Harris, Christopher & Vickers, John, 1997. "Competition and growth with step-by-step innovation: An example," European Economic Review, Elsevier, vol. 41(3-5), pages 771-782, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claude D'Aspremont & Rodolphe Dos Santos Ferreira & Louis‐André Gérard‐Varet, 2010. "Strategic R&D investment, competitive toughness and growth," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(3), pages 273-295, September.
    2. Alena Zemplinerova, 2010. "Competition policy and economic analysis: What can we learn from firm and industry data?," CERGE-EI Books, The Center for Economic Research and Graduate Education - Economics Institute, Prague, edition 1, number b07, May.
    3. Bucci, Alberto & Parello, Carmelo Pierpaolo, 2009. "Horizontal innovation-based growth and product market competition," Economic Modelling, Elsevier, vol. 26(1), pages 213-221, January.
    4. Michael Peneder & Martin Woerter, 2014. "Competition, R&D and innovation: testing the inverted-U in a simultaneous system," Journal of Evolutionary Economics, Springer, vol. 24(3), pages 653-687, July.
    5. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    6. Ronald Goettler & Brett Gordon, 2014. "Competition and product innovation in dynamic oligopoly," Quantitative Marketing and Economics (QME), Springer, vol. 12(1), pages 1-42, March.
    7. Walter Park & Ralph Sonenshine, 2012. "Impact of Horizontal Mergers on Research & Development and Patenting: Evidence from Merger Challenges in the U.S," Journal of Industry, Competition and Trade, Springer, vol. 12(1), pages 143-167, March.
    8. Ping Lin & Tianle Zhang & Wen Zhou, 2020. "Vertical integration and disruptive cross‐market R&D," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(1), pages 51-73, January.
    9. Okada, Yosuke, 2005. "Competition and productivity in Japanese manufacturing industries," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 586-616, December.
    10. Lee, Chang-Yang, 2009. "Competition favors the prepared firm: Firms' R&D responses to competitive market pressure," Research Policy, Elsevier, vol. 38(5), pages 861-870, June.
    11. Charles Bérubé & Marc Duhamel & Daniel Ershov, 2012. "Market Incentives for Business Innovation: Results from Canada," Journal of Industry, Competition and Trade, Springer, vol. 12(1), pages 47-65, March.
    12. Aghion, Philippe & Akcigit, Ufuk & Howitt, Peter, 2014. "What Do We Learn From Schumpeterian Growth Theory?," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 0, pages 515-563, Elsevier.
    13. David Moroz, 2005. "Production of Scientific Knowledge and Radical Uncertainty: The Limits of the Normative Approach in Innovation Economics," European Journal of Law and Economics, Springer, vol. 20(3), pages 305-322, November.
    14. Wilfred Dolfsma & Gerben Velde, 2014. "Industry innovativeness, firm size, and entrepreneurship: Schumpeter Mark III?," Journal of Evolutionary Economics, Springer, vol. 24(4), pages 713-736, September.
    15. Johannes Van Biesebroeck & Aamir Hashmi, 2007. "Market Structure and Innovation: A Dynamic Analysis of the Global Automobile Industry," 2007 Meeting Papers 362, Society for Economic Dynamics.
    16. Cátia Felisberto, 2013. "Liberalisation, competition and innovation in the postal sector," Empirical Economics, Springer, vol. 44(3), pages 1407-1434, June.
    17. Lambertini, Luca & Poyago-Theotoky, Joanna & Tampieri, Alessandro, 2017. "Cournot competition and “green” innovation: An inverted-U relationship," Energy Economics, Elsevier, vol. 68(C), pages 116-123.
    18. Gilbert Richard J, 2006. "Competition and Innovation," Journal of Industrial Organization Education, De Gruyter, vol. 1(1), pages 1-23, December.
    19. Gupta, Kartick & Banerjee, Rajabrata & Onur, Ilke, 2017. "The effects of R&D and competition on firm value: International evidence," International Review of Economics & Finance, Elsevier, vol. 51(C), pages 391-404.
    20. Artés, Joaquín, 2009. "Long-run versus short-run decisions: R&D and market structure in Spanish firms," Research Policy, Elsevier, vol. 38(1), pages 120-132, February.

    More about this item

    Keywords

    intensity of competition; market structures; competition policy; innovation activity;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnp:wpaper:1447. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RANEPA maintainer (email available below). General contact details of provider: https://edirc.repec.org/data/aneeeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.