Competition and innovation: together a tricky rollercoaster for productivity

Henry van der Wiel, CPB The Netherlands

This presentation deals with competition and innovation as drivers of productivity. According to recent insights a trade-off may exist between these drivers. In fact, the relationship could look like an inverted U suggesting that more competition is not always good for innovation. If competition is too intense, it may have a negative effect on innovation (and productivity). The presentation highlights two issues. First, it sheds more light on how to measure competition on product markets when firm level data are available. In that respect, it elaborates on a new competition measure: the profit elasticity. Second, using this new measure of competition, it provides empirical evidence for the relationship between competition, innovation and productivity for the Netherlands.

About the speaker
Henry van der Wiel graduated in Macro Economics from Erasmus University Rotterdam and recently took a PhD in Economics at Tilburg University. He works at CPB Netherlands Bureau for Economic Policy Analysis and is also affiliated as researcher at CentER at Tilburg University. He has frequently published on the sources of productivity. He is also specialized in the fields of growth economics, welfare analysis and competition issues.

Venue: UNU-MERIT New student class room (Fourth Floor)

Date: 14 October 2010

Time: 12:30 - 13:30  CET