Competition, Innovation and the Use of Innovations. (5th February 2020)

• Record Type: Journal Article
• Authors: Symeonidis, George
• Is Part Of: Journal of industrial economics. Volume 67:Number 3/4(2019:Sep./Dec.)
• Page Start: 565
• Page End: 592
• Publication Date: 2020-02-05
• Subjects: Industrial organization (Economic theory) -- Periodicals; 338
• DOI: 10.1111/joie.12209
• Languages: English
• ISSNs: 0022-1821

Abstract

Abstract : I examine the effect of competition on the production and use of innovations using evidence from a natural experiment of policy reform, the introduction of cartel legislation in the U.K. in the late 1950's. I compare manufacturing industries which had been collusive and were therefore affected by the policy with those that had been competitive and were not affected. The intensification of competition following the abolition of cartels caused a short‐run decrease in innovations produced, but had no significant effect in the long run. In contrast, innovations used increased both in the short run and in the long run.