François Jeanjean
Orange, France
Title: Technical progress reduces the degree of competition that maximizes investment in innovation
Biography
Biography: François Jeanjean
Abstract
The relationship between competition and investment is generaly characterized by an inverted U relationship. The position of these curves and, in particular their maximum, i.e, the degree of competition that maximizes investment, depends on the degree of technical progress that characterizes each industry. Industries experiencing a high degree of technical progress, as information technologies, maximize their investments in innovation for lower degrees of competition than other industries. Sectoral and competition authorities should take this into account for the regulation of competition. Information technologies should not be regulated as brick and mortar industries as claimed by a former European commissioner for competition.