Antitrust Policies and Corporate Innovation
61 Pages Posted: 19 Mar 2020 Last revised: 1 Mar 2023
There are 2 versions of this paper
Antitrust Policies and Corporate Innovation
Competition Laws and Corporate Innovation
Date Written: March 16, 2020
Abstract
We evaluate the impact of antitrust laws on corporate innovation while differentiating by firm financing constraints and ownership structure. Intensifying competition laws boosts the number, impact, and explorative nature of patents. The effects are weaker among (a) more financial-constrained firms given the costs of innovation and (b) family-controlled firms as families have large proportions of their wealth concentrated in their firms, impeding risky investments. Consistent results emerge using our two, newly assembled datasets: a firm-level dataset of about 1 million observations across 66 countries starting in 1991 and a long-panel, country-industry dataset covering 186 countries starting in 1888.
Keywords: Innovation, Antitrust Law, Corporate Finance, Capital and Ownership Structure
JEL Classification: O31; K21; G32, L4
Suggested Citation: Suggested Citation