chapter  11
INNOVATION, MARKET STRUCTURE AND ANTITRUST
Pages 16

The harmonization of competition policy is a laudable goal, but one which is still quite remote. In this chapter we argue that the full convergence or harmonization of competition policy on a global basis must await the adoption of a common intellectual framework, common political and social goals, and perhaps common legal and administrative structures. This is clearly an unlikely outcome, possibly even an undesirable one. However, the global economy can benefit if competition policy everywhere adheres to at least a few superordinate goals and some common themes. In this chapter we suggest that economic welfare ought to be adopted as the principal goal of antitrust, requiring that economic analysis inform competition policy. We furthermore suggest that commanding insights into the nature of competition can be derived by recognizing the importance of technological innovation to competition. Indeed, we suggest that if competition policy develops and adopts a pro-innovation framework, it will assist economic development and competition more assuredly than policies which are blind to the centrality of innovation to competition. No country has yet fully recognized in its policies the importance of innovation to competition, and competition to innovation. We suggest ways in which competition policy can assist innovation. Our framework is generally applicable to all developed countries interested in economic growth and prosperity.