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American Innovation Under Threat

  • November 18, 2021
  • Jack Karsten
Restrictive Legislation and Global Competition
SUMMARY

A package of antitrust legislation recently introduced in Congress aims to improve competition in the U.S. technology sector. The proposed provisions in these bills would limit digital platforms’ ability to integrate product features, promote new products, or even compete in new market segments.

We conclude that such restrictions will harm U.S. scientific and technological leadership, hurting U.S. competitiveness and living standards.

Antitrust regulations that reduces commercial scale and product scope weaken incentives for corporate research and undermine the ability to innovate.

We highlight how these limitations may affect American scientific and technological leadership in the world. We also consider the role of information technology firms in advancing U.S. technology, the foreign competition they face, and the fragile nature of the U.S. innovation ecosystem.

You can download and view the entire slide deck by visiting the Innovation Frontier Project’s website.

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