Competitiveness

Neo-Brandeisians have launched a campaign to discredit the argument that breaking up or shackling America’s large technology multinationals would be a boon for China. But they’re wrong.

Given that the Microsoft-Mistral AI partnership does not create a relevant merger situation, does not harm competition, and has a pro-competitive impact on the market, the CMA should not intervene.

Given that the Amazon-Anthropic partnership does not create a relevant merger situation, does not harm competition, and has a pro-competitive impact on the market, the CMA should not intervene.

Given that Microsoft’s non-exclusive licensing of Inflection AI’s model and its hiring of former Inflection AI employees does not create a relevant merger situation, does not harm competition, and has a pro-competitive impact on the market, the CMA should not intervene.

Available from Amazon and other booksellers: Technologies and tech companies are accused of creating a myriad of societal problems. Technology Fears and Scapegoats exposes them as mostly myths, falsehoods, and exaggerations. It issues a clarion call to restore the West’s faith in technological progress.

Larger firms are generally more productive because of scale economies, but some U.S. industries still have too high a share of small firms. Policymakers should encourage, not discourage, greater consolidation in these industries.

A recent working paper suggests that trade and technology restrictions in the U.S. not only reduce consumer welfare and exports, but also negatively influence other indicators such as foreign investment due to declines in associated technology transfer.

Many U.S. industries would benefit from greater consolidation and economies of scale, according to a new report from the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy.

Policymakers should ignore neo-Brandeisian calls to regulate or break up large companies. Another study has found large firms can benefit the economy and are crucial for optimal productivity.

Canada needs a productivity commission. But instead of emulating Australia’s model, which is driven by orthodox neoclassical economics, it should take guidance from “productionists” with a deep understanding of firm, industry, and technology dynamics.