Working Paper No. 07-04: Beyond Schumpeter vs. Arrow: How Competition Fosters Innovation

AAI Advisory Board member and American University law professor Jonathan Baker argues that today’s antitrust institutions support innovation by targeting types of industries and practices where antitrust enforcement would enhance research and development incentives the most. It is time to move beyond the “on-the-one-hand Schumpeter, on-the-other-hand Arrow” debate and embrace antitrust as essential for fostering innovation.