Innovation Considerations in Horizontal Merger Control

This paper focuses on the assessment of mergers, and in particular on unilateral effects analysis where innovation plays an important role. The paper discusses the economic theories behind innovation, how we move from the traditional product-by-product market definition to pipeline competition and innovation competition, and discusses the concept of innovation space. The paper provides a structural analysis of unilateral effects in such markets analyzing how competition authorities should assess a transaction where the main theory of harm is based on innovation considerations