The relationship between competition policy and innovation in the European business environment

Competition is an essential element in the efficient functioning of markets. It brings important benefits to the consumer by encouraging companies to innovate, in order to provide consumers the best goods and services at the best possible price. In the European Union, this process should contribute to the national competitiveness and EU global competitiveness. Competition policy provides instruments to encourage and improve the competitive process, and to ensure consumers to enjoy the benefits of that process. These aims are achieved in practice through competition law and enforced by competition authorities. Companies should be stimulated to innovate but innovation could stimulate to exceed the limits of competition law. Appropriate information and prevention instruments at the national level could increase the corporate responsibility and promote competition culture inside the company.