Monday, November 24, 2008

Europe - competition policy as an obstacle to growth

Is EU competition policy an obstacle to innovation and growth?

The focus of this paper is on high-tech firms. Both competition law and intellectual property rights are designed to promote innovation and economic efficiency. But they pull in different directions, at least superficially: competition policy seeks to maximise competition, while the granting of a patent provides an innovator with a temporary monopoly. High-tech companies need to benefit from the development of their intellectual property, while newcomers need to be able to challenge incumbents and spur them to innovate. It is up to competition authorities to strike the right balance.

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