Competition, Innovation, and Inclusive Growth
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
We provide an overview of the theories and empricial evidence on the complex relationship among innovation, competition, and inclusive growth. Competition and innovation-led growth are critical to drive productivity gains and support broad-based growth. However, new technologies and trends in market concentration are stifling future innovation while contributing to the marked increase in inequality. Beyond consumer welfare in a narrow market, competition policy should adapt to this new reality by considering the spillover and dynamic effects of market power, especially on firm entry, innovation, and inequality. Innovation policies should tackle not only government failures but also market failures.
Series:
Working Paper No. 2021/080
Subject:
Competition Economic growth Economic sectors Financial crises Financial markets Inclusive growth Income Income inequality National accounts Production Productivity
Frequency:
regular
English
Publication Date:
March 19, 2021
ISBN/ISSN:
9781513574172/1018-5941
Stock No:
WPIEA2021080
Pages:
28
Please address any questions about this title to publications@imf.org