This paper discusses the effects of horizontal mergers on innovation. We rely on the existing academic literature and our own research work to present the various positive and negative effects of mergers on innovation. Our analysis shows that, even in the absence of technological spillovers and R&D complementarities, the overall impact of a merger on innovation may be positive. We derive a number of policy implications regarding the way innovation effects should be handled by competition authorities in merger control and highlight the differences with the analysis of price effects.
Merger Policy; Innovation; R&D Investments;
- K21: Antitrust Law
- L13: Oligopoly and Other Imperfect Markets
- L40: General
TSE Working Paper, n. 18-892, February 2018, revised May 2018