Competition Policy And Enterprise Innovation

The discussion on the relationship between competition and innovation has always been the main concern and controversial topic of economists,and many scholars have never reached a consistent conclusion.The opposite of competition is monopoly.Previous studies have mostly focused on the relationship between economic monopoly and innovation,while the research on the relationship between administrative monopoly and innovation of local government is less involved.Administrative monopoly is considered to be the main reason for the decline of market competition efficiency.In 2008,the anti-monopoly law was officially implemented,and one of its regulatory contents is administrative monopoly.The promulgation of the anti-monopoly law provides new ideas and ways to study the relationship between competition and innovation.Using the quasi natural experiment of the implementation of the anti-monopoly law and the continuous DID method,this paper discusses the impact of competition(anti administrative monopoly)on enterprise innovation.At the same time,this paper is also an evaluation of the implementation effect of the anti-monopoly law from the perspective of enterprise innovation.This paper puts forward three core questions:(1)how will the degree of regional administrative monopoly change after the implementation of the anti-monopoly law?(2)What is the relationship between the degree of regional administrative monopoly and enterprise innovation?(3)What impact does the implementation of the anti-monopoly law have on enterprise innovation?This paper uses the "relative price method" to calculate the administrative monopoly degree of 31 provinces,municipalities and autonomous regions in Chinese mainland from 2004-2015.On this basis,taking the listed enterprises in Shanghai and Shenzhen stock markets from 2004 to 2015 as the research sample,this paper empirically analyzes the three core questions and draws the following conclusions:(1)after the implementation of the anti-monopoly law,the degree of regional administrative monopoly will decrease significantly.(2)There is a negative correlation between the degree of regional administrative monopoly and enterprise innovation.After solving the endogenous problem,the result remains stable.Mechanism test shows that regional administrative monopoly reduces the level of innovation output of enterprises by increasing institutional transaction costs.In terms of heterogeneity analysis,the negative correlation between the degree of regional administrative monopoly and enterprise innovation is only significant in the provincial group,the eastern and central region group,and the state-owned enterprise group.(3)The implementation of the anti-monopoly law has an obvious role in promoting enterprise innovation.After the implementation of the anti-monopoly law,compared with the enterprises in the provinces with less decline in regional administrative monopoly,the innovation output level of enterprises in the provinces with greater decline in regional administrative monopoly has increased significantly.From the dynamic effect of policy implementation,the policy effect lags behind for 2-3 years.The innovation of this paper lies in:(1)the innovation of research perspective.From the perspective of administrative monopoly,this paper discusses the impact of competition(anti administrative monopoly)on enterprise innovation by using the regulation of administrative monopoly in the anti-monopoly law.(2)The innovation of theoretical model.Referring to the existing literature,in the research on the relationship between transaction cost and enterprise R&D investment,this paper introduces the institutional transaction cost caused by regional administrative monopoly,and discusses the relationship between regional administrative monopoly and enterprise innovation.(3)The innovation of research methods.Using the quasi natural experiment of the implementation of the anti-monopoly law and the continuous DID method,this paper studies the impact of the anti-monopoly law on enterprise innovation.