While there is long-standing view that competition drives innovation and that innovation, in turn, drives higher welfare and economic growth, there is no theoretical consensus on the precise relationship between these two important components of a market economy.
In June 2023, the OECD held a discussion on theoretical perspectives of the relationship between competition and innovation, what innovation means and what types of innovation arise from competition. Participants had the opportunity to learn about the key drivers of innovation, the role of competition policy in generating incentives to innovate or spreading innovation across industries. As there are many other factors that drive innovation, such as the role of financing agents, geographical considerations and network effects among others, the discussion was a first opportunity to explore how these factors interact with competition and what effects they have on competitive dynamics in those markets.
The findings of this discussion and a second discussio on the topic held in December 2023 were presented to the public at large during the 2024 edition of our OECD Competition Open Day on 6 March 2024.
This page contains all session information and materials.
