Competition Policy and Innovation

This paper seeks to improve understanding of the links between innovation and competition policy. It is intended to help OECD Member countries identify ways in which they can design and implement policies that best promote innovation while protecting against anti-competitive behaviour. Special attention is given to the need for firms to co-operate during the innovation process, e.g. by forming joint ventures and by engaging in co-operative standard setting activities, and the special challenges such co-operation poses for competition policy. The paper specifically addresses competition challenges that arise from inter-firm co-operation that aims to commercialise inventions, diffuse innovation more broadly throughout the economy, or extend and elaborate on existing technology. Although the economic principles articulated here apply across the entire economy, the paper focuses attention on the information and communications technology sector, where the opportunities for innovation ...