chapter  9
18 Pages


ByWerner Meiβner, Rainer Markl

Economists are used to analysing policies towards R&D in terms of static and dynamic efficiency. On the one hand, it seems reasonable to expect that the supply of goods and services will be improved by the introduction of new processes and products. Whereas, on the other hand, innovations typically give rise to a static efficiency loss due to the additional monopoly power they offer to innovating firms.