17. government & 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

� UK competition policy� the OFT and the Competition Commission


UK competition legislation

� UK competition policy� the OFT and the Competition Commission� restrictive practices policy

� Chapter 1 prohibition� types of anti-competitive behaviour� powers of the OFT

� monopoly policy� Chapter 2 prohibition� market-share criterion� market contestability� anti-competitive practices


� 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)

� Targets of technology policy� invention

� innovation

� diffusion

� Technological change and market failure� R&TD free riders

� monopoly power

� duplication

� risk and uncertainty


� Forms of intervention

� the patent system

� public provision

� R&TD subsidies

� co-operative R&TD

� diffusion policies

� other policies


1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

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

% o

f G

DP

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

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

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

% o

f G

DP

.

UK

Gross expenditure on R&D as a percentage of GDP

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

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

% o

f G

DP

.

Germany

France

UK


1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

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

% o

f G

DP

.

USA

Germany

France

UK


1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

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

% o

f G

DP

.

Japan

USA

Germany

France

UK


� 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



� Technology policy in the UK and EU� UK policy



� 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

17. government & the firm

Education

Transcript of 17. government & the firm