A proposal for moving from price-centric to innovation-centric competition policy, reviewing theory and evidence on … economic incentives for innovation. Competition policy and antitrust enforcement have traditionally focused on prices rather … than innovation. Economic theory shows the ways that price competition benefits consumers; and courts, antitrust agencies …

We develop a simple model of competition for the market that shows that, contrary to the Arrow view, endogenous entry …

market competition. The amount of knowledge firms can absorb is made dependent on their own research efforts, e.g. firms …-cooperating firms if spillovers are sufficiently large. The degree of market competition is a key determinant of the effects of research … cooperation on research efforts, implying that existing models which assume perfect competition might be too restrictive. …