Premium
Competition, Innovation and the Use of Innovations
Author(s) -
Symeonidis George
Publication year - 2019
Publication title -
the journal of industrial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.93
H-Index - 77
eISSN - 1467-6451
pISSN - 0022-1821
DOI - 10.1111/joie.12209
Subject(s) - cartel , competition (biology) , economics , short run , production (economics) , competition policy , industrial organization , legislation , natural experiment , international economics , monetary economics , microeconomics , collusion , ecology , statistics , mathematics , european union , political science , law , biology
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.