Market Regulation and Innovation: Direct and Indirect Effects

Aurelien Quignon ()
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Aurelien Quignon: ICN Business School

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Abstract: The effects of competition regulations on innovation are, in theory, ambiguous. Using a panel of twenty-five OECD countries over 1995–2015, we estimated how domestic and foreign competition affects innovation. Reducing regulation intensifies domestic and foreign competition, increasing R&D expenditure and patenting. Accounting for interaction between these two sources of product market competition, we find that domestic regulation directly led to growing R&D expenditure and patent production, whereas competition from foreign regulation influences innovation toward its effect on domestic competition.

Keywords: Regulation; Competition; Innovation; OECD (search for similar items in EconPapers)
Date: 2022-08-26
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Published in Journal of Industry, Competition and Trade, 2022, 22 (3-4), pp.429-456. ⟨10.1007/s10842-022-00390-y⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04701805

DOI: 10.1007/s10842-022-00390-y

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