Innovation economics: The interplay among technology standards, competitive conduct, and economic performance

Daniel F. Spulber*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

17 Scopus citations

Abstract

Industries with technological standards can be highly competitive and innovative. The modern approach to Innovation Economics understands that technology standards, the competitive conduct of firms, and the economic performance of innovative industries are endogenous and jointly determined. Market competition and standards organizations endogenously determine technology standards, which are consistent with innovative efficiency. This contrasts with traditional Innovation Economics, which can be summarized as a "Standards-Conduct-Performance" paradigm. The traditional view, which is reminiscent of the traditional Industrial Organization "Structure-Conduct-Performance" paradigm, incorrectly assumes that technology standards are exogenous and cause imperfectly competitive conduct and inefficient economic performance. Instead, studies of innovation should apply game-theoretic models that account for strategic interaction and empirical tools that control for the interplay among technology standards, competitive conduct, and economic performance.

Original languageEnglish (US)
Article numbernht041
Pages (from-to)777-825
Number of pages49
JournalJournal of Competition Law and Economics
Volume9
Issue number4
DOIs
StatePublished - Dec 2013

ASJC Scopus subject areas

  • Economics and Econometrics
  • Law

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