Product market reform and innovation in the EU

Rachel Griffith, Rupert Harrison, Helen Simpson

Research output: Contribution to journalArticlepeer-review


European Union countries have implemented widespread reforms to product markets to stimulate competition, innovation, and economic growth. We provide empirical evidence that the reforms carried out under the EU Single Market Programme (SMP) were associated with increased product market competition, as measured by a reduction in average profitability, and with a subsequent increase in innovation intensity and productivity growth for manufacturing sectors. Our analysis exploits exogenous variation in the expected impact of the SMP across countries and industries to identify the effects of reforms on average profitability, and the effects of profitability on innovation and productivity growth. © The editors of the Scandinavian Journal of Economics 2010.
Original languageEnglish
Pages (from-to)389-415
Number of pages26
JournalThe Scandinavian Journal of Economics
Issue number2
Publication statusPublished - Jun 2010


  • Competition
  • Innovation
  • Productivity growth


Dive into the research topics of 'Product market reform and innovation in the EU'. Together they form a unique fingerprint.

Cite this