Panel 2. The Relationship between Competition and Innovation

Mar 6, 2024 | 10:30 AM - 11:45 AM
CC 12

Description

While there is long-standing view that competition drives innovation and that innovation, in turn, drives higher welfare and economic growth, there is no theoretical consensus on the precise relationship between these two important components of a market economy. This session explored the recent developments in this discussion from a theoretical perspective and how they translate into the way in which competition authorities have incorporated innovation as part of their enforcement activities. The session reviewed different approaches competition authorities have used and could use to incorporate innovation when evaluating a transaction or determining if a certain behaviour is anti-competitive. This includes the assessment of innovation starting from the definition and analysis of relevant markets to the establishment of theories of harm, the consideration of efficiencies, the analysis of other drivers of innovation, and the design of remedies and commitments.