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Product market regulation, innovation, and distance to frontier

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Date
2010
Dewey
Croissance et développement économiques
Sujet
Product market regulation; Innovation
JEL code
L16; O30
Journal issue
Industrial and Corporate Change
Volume
19
Number
1
Publication date
02-2010
Article pages
117-159
Publisher
Oxford University Press
DOI
http://dx.doi.org/10.1093/icc/dtp037
URI
https://basepub.dauphine.fr/handle/123456789/3716
Collections
  • LEDa : Publications
Metadata
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Author
Amable, Bruno
Demmou, Lilas
Ledezma, Ivan
Type
Article accepté pour publication ou publié
Abstract (EN)
This article contributes to the literature on competition and innovation. It tests the impact of market regulation on innovation conditional to the closeness to the technological frontier with a panel of 15 industries for 17 OECD countries over the period 1979–2003. One of the main conclusions of this literature is that of a negative impact of regulation growing in intensity with the proximity to the frontier. A simple model of innovation and growth shows that one should not necessarily expect this result. Empirical tests on a variety of pecifications show that the impact of regulation can be positive when industries are close to the technological frontier. We argue that this result is in fact line with previous evidence.

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