Competition, Innovation, and Competition Law: Dissecting the Interplay

MAGKS Joint Discussion Paper Series in Economics, 42-2017

26 Pages Posted: 12 Oct 2017

See all articles by Wolfgang Kerber

Wolfgang Kerber

University of Marburg - School of Business & Economics

Date Written: October 6, 2017

Abstract

The digital revolution has reinvigorated the discussion about the problem how to consider innovation in the application of competition law. This raises difficult questions about the relationship between competition and innovation as well as what kind of assessment concepts competition authorities should use for investigating innovation effects, e.g., in merger cases. This paper, on one hand, reviews briefly our economic knowledge about competition and innovation, and claims that it is necessary to go beyond the limited insights that can be gained from industrial economics research about innovation (Schumpeter vs. Arrow discussion), and take into account much more insights from innovation research, evolutionary innovation economics, and business and management studies. On the other hand, it is also necessary to develop much more innovation-specific assessment concepts in competition law (beyond the traditional product market concept). Using the example of assessing innovation competition in merger cases, this article suggests to analyze much more systematically the resources (specialized assets) that are necessary for innovation. This concept is directly linked to the new discussion about the Dow/DuPont case in the EU and about data as necessary resource for (data-driven) innovation.

Keywords: Competition, Innovation, Competition Law, Merger Control, Innovation Market

JEL Classification: K21, L12, L41, O31

Suggested Citation

Kerber, Wolfgang, Competition, Innovation, and Competition Law: Dissecting the Interplay (October 6, 2017). MAGKS Joint Discussion Paper Series in Economics, 42-2017. Available at SSRN: https://ssrn.com/abstract=3051103 or http://dx.doi.org/10.2139/ssrn.3051103

Wolfgang Kerber (Contact Author)

University of Marburg - School of Business & Economics ( email )

Am Plan 2
Marburg, D-35037
Germany
+49 6421 2823921 (Phone)

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