ABSTRACT
The problem of market delineation is central to all areas of competition theory and policy. The definition of a market determines its degree of concentration and enables competition authorities to see whether a firm has a dominant position in the market, and if a merger of firms will create or strengthen a dominant position and whether or not such a merger should be cleared. However, a relevant market is not a static concept but is subject to technological change. New markets arise, or formerly separate markets merge into one. As a consequence, political measures that have been adequate for a few years may no longer apply. There is thus an important link between innovation economics and competition theory.
