Government And The Firm

Government and the Firm

Policies towards Monopolies and Oligopolies ■

Competition policy in the EU ✜

EU policy towards restrictive practices ✦ Article

81 ✦ focus on behaviour (rather than on structures) ✜

EU policy towards monopolies ✦ Article

✜

82

EU policy towards mergers ✦ 1990

merger control measures ✦ experience of merger control since 1990 ✦ recent moves on merger control ■

Assessing EU policy

Policies towards Monopolies and Oligopolies ■

UK competition policy ✜

the OFT and the Competition Commission

UK competition legislation

Policies towards Monopolies and Oligopolies ■

UK competition policy ✜

the OFT and the Competition Commission

✜

restrictive practices policy ✦ Chapter ✦ types

of anti-competitive behaviour

✦ powers

✜

1 prohibition of the OFT

monopoly policy ✦ Chapter

2 prohibition

✦ market-share ✦ market

criterion

contestability

✦ anti-competitive

practices

Policies towards Monopolies and Oligopolies ■

UK competition policy (cont.) ✜

merger policy (2002 Enterprise Act) ✦ role

of OFT and Competition Commission

✦ criteria

■

for judgment

Assessment of competition policy ✜

focus on behaviour and its effects rather than on market structure

✜

prohibition of certain practices

✜

tougher powers to identify secret collusion

Policies towards Research and Development ■

Importance of R&TD to business

World top 21 R&D spenders (1999)

UK top 20 R&D spenders (1999)

Policies towards Research and Development ■

■

Targets of technology policy ✜

invention

✜

innovation

✜

diffusion

Technological change and market failure ✜

R&TD free riders

✜

monopoly power

✜

duplication

✜

risk and uncertainty

Policies towards Research and Development ■

Forms of intervention ✜

the patent system

✜

public provision

✜

R&TD subsidies

✜

co-operative R&TD

✜

diffusion policies

✜

other policies

Gross expenditure on R&D as a percentage of GDP 3.0 2.8

% of GDP.

2.6 2.4 2.2 2.0 1.8 1.6 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Gross expenditure on R&D as a percentage of GDP 3.0 2.8

% of GDP.

2.6 2.4 2.2 2.0

UK 1.8 1.6 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Gross expenditure on R&D as a percentage of GDP 3.0 2.8

% of GDP.

2.6 2.4

Germany

2.2

France

2.0

UK 1.8 1.6 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Gross expenditure on R&D as a percentage of GDP 3.0 2.8

% of GDP.

2.6

USA

2.4

Germany

2.2

France

2.0

UK 1.8 1.6 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Gross expenditure on R&D as a percentage of GDP 3.0

Japan

2.8

% of GDP.

2.6

USA

2.4

Germany

2.2

France

2.0

UK 1.8 1.6 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Policies towards Research and Development ■

Forms of intervention the patent system ✜ public provision ✜ R&TD subsidies ✜ co-operative R&TD ✜ diffusion policies ✜ other policies ✜

■

Technology policy in the UK and EU

Policies towards Research and Development ■

Forms of intervention the patent system ✜ public provision ✜ R&TD subsidies ✜ co-operative R&TD ✜ diffusion policies ✜ other policies ✜

■

Technology policy in the UK and EU ✜

UK policy

Policies towards Research and Development ■

Forms of intervention the patent system ✜ public provision ✜ R&TD subsidies ✜ co-operative R&TD ✜ diffusion policies ✜ other policies ✜

■

Technology policy in the UK and EU UK policy ✜ EU policy ✜

Policies towards Training ■

Training and economic performance labour productivity ✜ innovation and change ✜ costs of production ✜

■

Training policy approaches to training policy ✜ training polices adopted in specific countries ✜

✦ USA ✦ Germany ✦ France ✦ UK