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Competition, Innovation and Productivity Growth: A Review of Theory and Evidence

77 Pages Posted: 22 Jul 2002  

Sanghoon Ahn

Hitotsubashi University - Faculty of Economics

Date Written: January 17, 2002

Abstract

This paper reviews recent studies on the links between competition, innovation and productivity growth in the long run. From a long-run perspective, one can see that gains from competition-enhancing regulatory reform are likely to exceed static gains observed in the short run since firms will continue to innovate in ways they would not have under regulation. By taking a dynamic perspective on competition and efficiency, one can also understand better the new modes of competition observed in "dynamically competitive" industries. This paper also attempts to cover some of relatively new research areas including: i) measuring welfare gains from product innovation; ii)competition and efficiency in e-commerce, education, and health care; and iii) interactions between product- and factor-market competition.

JEL Classification: D40, L10, O30, O40

Suggested Citation

Ahn, Sanghoon, Competition, Innovation and Productivity Growth: A Review of Theory and Evidence (January 17, 2002). OECD Economics Working Paper No. 317. Available at SSRN: https://ssrn.com/abstract=318059 or http://dx.doi.org/10.2139/ssrn.318059

Sanghoon Ahn (Contact Author)

Hitotsubashi University - Faculty of Economics ( email )

Tokyo, 186-8601
Japan

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