Innovative Start-Ups and Competition Policy: How to Reign in Big

This dissertation explores the relationship between competition and innovation. It challenges traditional antitrust measures, proposing nuanced strategies to ensure fair competition, foster innovation, and protect consumer interests. Chapter 2 delves into the dynamics of start-up acquisitions and their impact on innovation, highlighting the importance of considering factors like bargaining power and expected acquisition rents. By examining two distinct scenarios, one where start-ups strategically allocate resources to enhance bargaining power and another where acquirers assume control over the start-up's research portfolio, the chapter shows the need for case-by-case assessments rather than blanket prohibitions on acquisitions. In Chapter 3, the focus shifts to the consequences of start-up acquisitions on innovation portfolios of both start-ups and incumbents. Finally, Chapter 4 explores the influence of cross-ownership arrangements on innovation direction and consumer welfare, advocating for a nuanced approach that weighs the positive innovation effects against potential negative price effects.