The markets which form the competitive environments for companies can differ widely, varying, for instance, in the composition of supply and demand and in the institutional framework that flanks all business activities. In addition, markets are constantly changing – nowadays in particular because of the digitization of all areas of life.
Against this backdrop, the economists of the research unit Structural Change and Competition examine the strategic behavior of companies, the design of markets and the impact of government regulation on competition.
The aim of the research is to provide policy recommendations in order to foster efficient and welfare-enhancing competition and facilitate successful business creation and development.
The researchers particularly focus on the effects of digitization on competition. The increasing interconnectedness of people, machines and processes and the associated automation and intelligent self-organization of production (autonomy) implies many questions and challenges for industry, policy and society.
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Sections of the Research Unit
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The focus of this section is the interaction between companies and markets as well as the interaction among companies. The IW researchers examine the impact of the organization and regulation of markets on businesses and competition. Furthermore, they investigate issues concerning the market design and the regulation of new technologies, for example in the context of Industry 4.0. The Digital Single Market initiative of the EU is also carefully examined.
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The main interest of this research section is the development of companies. Companies are founded, they grow or shrink, and some eventually leave the market. Companies adapt to changing circumstances, but they also affect structural change themselves. A crucial issue treated in this research section is the establishment of an institutional framework that renders Germany an attractive place for business for companies from all over the world.
Sustainable Digitalization: A digital economic concept
Barbara Engels
Data usage, networking, automation and autonomization: digitalization is omnipresent. But what is digitalization for? It is not an end in itself. It is intended to serve people, to help them achieve greater prosperity.
The Importance of the Data Economy for Europe’s Digital Strategic Autonomy
Jan Büchel / Barbara Engels in European Liberal Forum
European companies need to have the ability to store, process, use, and share data securely and autonomously, for example by using cloud services based on agreed quality standards, values, and legislation.
Jan Büchel / Barbara Engels in European Liberal Forum IW
Subsidizing Semiconductor Production for a Strategically Autonomous European Union?
Hubertus Bardt / Klaus-Heiner Röhl / Christian Rusche in The Economists' Voice
The COVID-19 pandemic has highlighted the vulnerability of international supply chains and the dependency of the economy of the European Union (EU) on goods from non-EU countries. The scarcity of microchips that has persisted since the COVID lockdowns has laid bare the dependency of the EU on overseas producers of this essential high-tech product.
Hubertus Bardt / Klaus-Heiner Röhl / Christian Rusche in The Economists' Voice IW
Data Management by Companies in Germany: An Empirical Stocktaking
Jan Büchel / Barbara Engels
Companies that exploit their own data can use it to analyse and improve their business processes and thus improve their results. Firms can also benefit from using data jointly with other companies.
European competitiveness: Exploiting potential for sustainable growth
Hubertus Bardt / Sandra Parthie / Christian Rusche
The EU's position as a major global economic power is increasingly under threat. On the one hand, this is a consequence of the crises that the EU has faced in the last two decades. In particular, these include the global financial crisis (2007-2009), the euro crisis (2010-2012), the refugee crisis (2015-2016), Brexit (2016-2020), the Corona pandemic since 2020 and the war in Ukraine from 2022.
Hubertus Bardt / Sandra Parthie / Christian Rusche IW
Start-ups and venture capital in Germany: Does the Future Fund bring new impetus to the start-up culture?
Klaus-Heiner Röhl
This policy paper shows the development of foundations of new companies and start-ups in Germany and, after a look at the international venture capital markets, presents the Future Fund, with which the German government wants to put start-up financing on a new footing.
Start-ups and economic growth in an international comparison
Klaus-Heiner Röhl / Leonie Heuer
This IW Report analyses the importance of entrepreneurial activity and Venture Capital for economic growth. Potential growth has declined significantly in the highly developed countries in recent years.
A Coronavirus Shock for the Retail Sector in German City Centres
Henry Goecke / Christian Rusche
The Corona pandemic and the measures taken to contain the virus have delivered an asymmetrical shock to German business. This asymmetry is exemplified by the effects on the retail trade, an import ant part of the nation’s economy.
Competition in the Digital Economy: An Analysis of Gatekeepers and Regulations
Jan Büchel / Christian Rusche
The Digital Age saw the rise of several rapidly growing digital platforms with substantial market shares. Europe is a large target market for these globally operating platforms, although the majority of the most successful platforms come from the USA or Asia.
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