Many technology industries are characterized by relatively high levels of industry concentration, with one or a few firms holding significant market share. This has sparked alarm in some regions, such as Europe, and among both progressive advocates on the left and populists on the right. Many are asserting that such concentration is anti-consumer and are calling for more aggressive antitrust enforcement, including limiting mergers and even breaking up large firms.
Yet, starting with the work of economist Joseph Schumpeter, and building steadily in the last two decades, many antitrust scholars have shown that innovation industries have unique characteristics that lead to increased concentration—and moreover that, in many cases, the concentration helps consumers and spurs economic growth.
Please join ITIF for an expert panel discussion on the ongoing policy debate about competition policy in innovation industries, including the latest research on the unique economics of innovation industries.