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We show that competing downstream firms may rather invest in their inefficient inhouse production than help improve the technology of the efficient supplier, even if this is costless. Even worse, a downstream firm can have strong incentives to decrease the efficiency of the supplier in order to...
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I derive a Net Innovation Pressure (NIP) formula based on logic that is similar to the logic underlying Upward Pricing …
Persistent link: https://www.econbiz.de/10012900890
Mergers lead to larger firms and a less competitive market structure, but their effects on innovation are not clear …. Mergers may improve innovation incentives by promoting economies of scope and scale, R\&D activities, and increasing the … ability to deal with uncertainties. However, mergers may also discourage innovation by reducing competition, increasing costs …
Persistent link: https://www.econbiz.de/10012935892
The impact of innovation on mergers has been a subject of debate in merger enforcements. Firms may decide to merge … because of increasing market share and expanding capacity. However, mergers may also be motivated by innovation since they … provide resources for commercialization of innovation and allow for capturing knowledge spillovers. There are myriad studies …
Persistent link: https://www.econbiz.de/10012935893
” commercialization. However, when focusing on downstream industry segments that bring patented technologies to market—“innovation” in an … concentration ultimately harms innovation, efficiency, consumer welfare, and democratic representation. It argues that patent law … provides prescriptions for enhancing industry entry through private ordering, federal innovation policy, and antitrust …
Persistent link: https://www.econbiz.de/10013213690
and innovation. After a half-century of debate and innumerable studies, the consensus is that there is no clear answer to … the question. On a concrete level, the uncertainty underlies the most fundamental critique of "innovation markets," or … markets for research and development (R&D). After all, if concentration leads to innovation, then antitrust challenges are not …
Persistent link: https://www.econbiz.de/10014051798
own, focusing on regulatory tools that foster competition and innovation. We identify three main regulatory tasks that are …
Persistent link: https://www.econbiz.de/10014107308
We introduce knowledge spillovers in a model of innovation competition a la Federico et al. (2017) and Denicolo and … Polo (2018), which otherwise features horizontal mergers that harm innovation due to the business stealing effect. With … merger can improve the incentives for innovation. Horizontal mergers raise (reduce) innovation if the spillover effect is …
Persistent link: https://www.econbiz.de/10013404464
also why history matters to regional specialisation patterns. In brief, it seems that innovation clusters as a distinctive … regional entity in international business and the geography of innovation are of increasing importance in STI policy …, innovation systems and competitiveness studies. Recently, more and more research has contributed to an evolutionary perspective …
Persistent link: https://www.econbiz.de/10003958844