Article | Antitrust Law Journal | September 2011

What Drives Innovation?

by Tom Nicholas


The idea that innovation drives economic growth is incontrovertible, but the factors that, in turn, drive innovation are not fully understood. This paper surveys the recent literature, focusing on three main drivers: intellectual property rights institutions, the supply-side of technical change, and the financing of innovation. Research in these areas reveals that laws and economic environments can create powerful incentives and disincentives for innovation. The mechanisms through which these effects influence competition and technological development can inform policy towards antitrust enforcement.

Keywords: Innovation and Invention; Economic Growth;


Nicholas, Tom. "What Drives Innovation?" Antitrust Law Journal 77, no. 3 (September 2011).