Product Market Reform and Innovation in the EU*

Rachel Griffith, Rupert Harrison and Helen Simpson

Scandinavian Journal of Economics, 2010, vol. 112, issue 2, 389-415

Abstract: European Union countries have implemented widespread reforms to product markets to stimulate competition, innovation, and economic growth. We provide empirical evidence that the reforms carried out under the EU Single Market Programme (SMP) were associated with increased product market competition, as measured by a reduction in average profitability, and with a subsequent increase in innovation intensity and productivity growth for manufacturing sectors. Our analysis exploits exogenous variation in the expected impact of the SMP across countries and industries to identify the effects of reforms on average profitability, and the effects of profitability on innovation and productivity growth.

Date: 2010
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https://doi.org/10.1111/j.1467-9442.2010.01602.x

Related works:
Working Paper: Product Market Reform and Innovation in the EU (2006)
Working Paper: Product market reform and innovation in the EU (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:112:y:2010:i:2:p:389-415

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