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on Innovation |
| By: | Tinnefeld, Franziska; Wagener, Florian |
| Abstract: | We develop a multi-region, multi-sector Romer-type dynamic partial equilibrium model of endogenous growth. We calibrate on equally sized regions North, East, and South, based on data from Germany, Poland, and China. We compare the effect of trade block formation on innovation outcomes. Integration leads to aggregate increase in both product and process innovation, resulting in aggregate welfare gains. These are concentrated in North: the research sectors of East and South collapse. Our findings explain data from eastern European countries, as well as current R&D policies in China that are designed to avoid downstream lock-in. |
| Keywords: | Industrial Organization, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2026–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:404836 |
| By: | Francesco Crespi; Dario Guarascio; Jelena Reljic |
| Abstract: | This article reassesses the concept of technological sovereignty and its policy implications in light of the close relationships between US- and China-based digital monopolies (i.e., Big Tech) and their respective military apparatuses. First, we empirically examine the growing influence of the private sector in R&D activities, the increasing centrality of digital technologies within sectoral and technological hierarchies, the emergence of Big Tech firms and their dominance over knowledge, infrastructures, and key technologies such as cloud computing and AI. Second, building on Coveri et al. (2025a), we analyse the mutual dependence between Big Tech and the military apparatus, showing how it reinforces the economic power of the private actors involved, weakens the state’s capacity to act autonomously, and intensifies the subordination of foreign governments dependent on US and Chinese digital platforms. Third, we propose a typology of technological sovereignty that takes into account the degree of technological dependence on Big Tech, the nature of the relationship between states and digital companies, and, consequently, the state’s capacity to align the activities of these companies with its own strategic objectives. |
| Keywords: | technological sovereignty, Big Tech, R&D, military apparatus |
| JEL: | F52 F55 O33 O34 O38 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:rtr:wpaper:0296 |
| By: | OECD |
| Abstract: | Artificial intelligence (AI) can reshape markets, yet its implications for competition remain underexplored. This paper develops a conceptual framework distinguishing AI users from developers, and generative (GenAI) from non-generative AI, showing how competitive mechanisms differ across these dimensions. Using multiple microdata sources, the analysis documents several findings. Adoption of non-GenAI is not associated with significant increases in market power. Descriptive evidence on firms’ exposure to GenAI suggests opportunities for smaller firms alongside advantages for firms with stronger existing capabilities. Concentration in AI innovation is correlated with higher sales concentration. AI-related patenting is associated with faster markup growth, particularly in the ICT sector, where AI is an output. The AI start-up ecosystem is dynamic and attracts substantial venture capital, but start-ups are frequently acquired by large incumbents. Overall, the evidence points to a dynamic yet uneven landscape, underscoring the need for continued monitoring as AI diffusion progresses. |
| Keywords: | AI, Artificial Intelligence, Competition |
| Date: | 2026–07–30 |
| URL: | https://d.repec.org/n?u=RePEc:oec:comaaa:64-en |
| By: | Colombo, Massimo G.; Füner, Lena; Guerini, Massimiliano; Hottenrott, Hanna; Souza, Daniel |
| Abstract: | This policy brief examines entrepreneurial ecosystems in France, Germany, and the United Kingdom using data on more than nine million firm births between 2009 and 2023. The study aims to assess both the quantity of start-ups and their quality, measured by their potential to become scale-ups. By analyzing regional patterns of entrepreneurship, the research provides new insights into Europe's competitiveness and the factors that influence entrepreneurial success. A key finding is that all three countries display considerable unrealized scale-up potential. While many firms exhibit characteristics associated with future growth, the number that achieve large-scale expansion falls short of expectations. This suggests that barriers to growth have become increasingly important in recent years. The study also highlights remarkable regional differences. Entrepreneur ial activity in France is concentrated in major metropolitan areas such as Paris, Lyon, and Marseille. In the United Kingdom, London ranks first in terms of start-up quantity, while Cambridge and Oxford stand out for their high entrepreneurial quality. Germany presents a more decentralized pattern, with Munich emerging as a leading hub, but also research-intensive regions such as Heidelberg and Bonn showing strong performance. Unlike in the United States, where the relationship between the number of start-ups and the quality of entrepreneurship is relatively weak, European regions that generate more start-ups also tend to produce more high-quality firms. This suggests that policies encouraging entrepreneurial entry can simultaneously im prove growth outcomes. |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewpbs:341974 |