Innovation and Regulation in the Digital Age: A Call for New Perspectives

  • Pierre-Jean Benghozi
  • Laurent Gille
  • Alain Vallée
Part of the Contributions to Economics book series (CE)


Relations between innovation and regulation are all but fluid and simple. When innovation, beyond just developing new techniques, means redefining the very framework for implementing and operating technologies, it often means breaking the rules, challenging them. In the digital economy, the way it overturns the regulation and rule setting system is particularly radical. Innovation is key to create competitive advantage in a highly dynamic sector such as information and communications technologies. Firms invest heavily in productive resources and take steps to protect their competitive advantage. Productive resources are either network and connection infrastructure or consumer control which is rarely seen as such. It could be consumer’s attention or visits which requires massive investments in content, for example. It does include intermediation platform like search engine, programs, knowledge, entertainment and other immaterial products of the digital age. There is a need to rethink regulation on the basis of innovation and mobilization of these productive resources. The digital economy calls for a more holistic consideration of the link between innovation and mobilization of value on the one hand, and regulation on the other.


Intellectual Property Network Externality Productive Resource Content Service Digital Service 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



This paper had been developed with the support of the Chair Innovation & Regulation of Digital Services, jointly created in 2007 by Orange, Ecole Polytechnique and TELECOM ParisTech.


  1. Anderson C (2006) The Long Tail: Why the Future of Business Is Selling Less of More. New York: HyperionGoogle Scholar
  2. Asbroeck B V, Cock M (2007) Belgian Newspapers v Google News: 2–0. Journal of Intellectual Property Law & Practice 2(7): 463–466CrossRefGoogle Scholar
  3. Baranes E, Bourreau M (2002) An Economic Guide to Local Loop Unbundling. Communication & Strategies n°45 1st quarterGoogle Scholar
  4. Benghozi P-J (2006) Mutations et articulations contemporaines des industries culturelles. Création et diversité au miroir des industries culturelles. X. Greffe. Paris: La Documentation Française: 129–152Google Scholar
  5. Benghozi P-J, Paris T (2005) The Economics and Business Models of Prescription in the Internet. In: Brousseau E and Curien N (Eds.), Internet Economics. Cambridge University Press, Cambridge, UKGoogle Scholar
  6. Bengtsson M, Kock S (2000) Co-opetition in Business Networks: To Cooperate and Compete Simultaneously. Industrial Marketing Management 19(5): 411–426CrossRefGoogle Scholar
  7. Benhamou F, Peltier S (2007). How Should Cultural Diversity Be Measured? An Application Using the French Publishing Industry. Journal of Cultural Economics 31 (2):85–107CrossRefGoogle Scholar
  8. Bomsel O (2007) Gratuit! Du déploiement de l’économie numérique. Paris: GallimardGoogle Scholar
  9. Bourreau M, Sonnac N (2006) Competition in Two Sided Markets (Special Issue). Communications & Strategies 61(1): 11–15Google Scholar
  10. Chantepie P, LeDiberder A (2004) Révolution numérique et industries culturelles. Paris: La DécouverteGoogle Scholar
  11. Curien N, Moreau F (2007) The Convergence Between Contents and Access: Internalizing the Market Complementarity. Review of Network Economics 6(2): 161–174CrossRefGoogle Scholar
  12. Ferrando J, Gabszewicz J, et al. (2008) Intermarket Network Externalities and Competition: An Application to Media Industries. International Journal of Economic Theory 4(3): 357–379CrossRefGoogle Scholar
  13. Freeman C (1987) Technology Policy and Economic Performance: Lessons from Japan. London: PinterGoogle Scholar
  14. Gensollen M, Bourreau M (2004) Communautés d’expérience et concurrence entre sites de biens culturels. Revue d’Economie Politique 113Google Scholar
  15. Greenstein S (2007) Economic Experiment and Neutrality in Internet Access. N. W. PaperGoogle Scholar
  16. Hatchuel A, Le Masson P, and Weil B (2007) Building Innovation Capabilities. The Development of Design-Oriented Organizations, in Innovation, Science and Industrial Change, the Handbook of Research., ed. Jerald Hage and Marius Meeus. Oxford, Oxford University Press, 294–312Google Scholar
  17. Henderson R M, Clark K B (1990) Architectural Innovation: The Econfiguration of Existing Product Technologies and the Failure of Established Firms. Administrative Science Quarterly 35: 9–30CrossRefGoogle Scholar
  18. Jacobides M G, Knudsen T, et al (2006) Benefiting from Innovation: Value Creation, Value Appropriation and the Role of Industry Architectures. Research Policy 35 (8): 1200–1221CrossRefGoogle Scholar
  19. Lemley M A, Merges R P, et al. (2003) Intellectual Property in the New Technological Age, Aspen Law & Business, New York, 1112 p.Google Scholar
  20. Lessig L (1999) Commons and Code. Intellectual Property Media and Entertainment Law Review 9: 405–415Google Scholar
  21. Menger P M (2006) Artistic Labor Markets: Contignent Work, Excess Supply and Occupational Risk Management. Handbook of the Economics of Art and Culture, Elsevier 1(1), V. A. Ginburgh & D. Throsby (ed.), pp. 766–806.Google Scholar
  22. Midler C (1995) “Projectification” of the Firm: The Renault Case. Scandinavian Journal of Management 11(4): 363–375CrossRefGoogle Scholar
  23. Moreau F, Peltier S (2004) Cultural diversity in the movie industry: a cross-national study. Journal of Media Economics, 17(2): 123–143CrossRefGoogle Scholar
  24. Pasquier D (2006) L’espace privé comme lieu de consommation culturelle. Création et diversité au miroir des industries culturelles. X. Greffe. Paris: La Documentation FrançaiseGoogle Scholar
  25. Penard T (2006) Faut-il repenser la politique de la concurrence sur les marchés internet? Revue internationale de droit économique 1: 57–88CrossRefGoogle Scholar
  26. Perrot A, Leclerc JP (2008) Cinéma et concurrence, Paris, La documentation francaiseGoogle Scholar
  27. Shapiro C, Varian H R (1999) Information Rules: A Strategic Rules to the Network Economy. Cambridge, MA: Harvard Business School PressGoogle Scholar
  28. Sirbu M (2007) What Is the Network Neutrality Debate About? A Workshop on Net Neutrality: American and European Perspectives. Innovation and Regulation in Digital Services Chair ( Paris, May 29, 2007Google Scholar
  29. Spannos Y E, Lioukas S (2001) An Examination into the Causal Logic of rent Generation: Contrasting Porter’s Competitive Strategy Framework and the Resource Based Perspective. Strategic Management Journal 22(10): 907–934CrossRefGoogle Scholar
  30. Stiglitz J (2002) Competition and Competitiveness in a New Eeconomy. Austrian Ministry for Economic Affairs and Labour. Economic Policy Center. Edited by Heinz Handler and Christina Burger. Vienna. JulyGoogle Scholar
  31. Teece D J, Pisano G, et al. (1997) Dynamic Capabilities and Strategic Management. Strategic Management Journal 18(7): 509–533CrossRefGoogle Scholar
  32. Wernerfelt B (1984) A Resource-Based View of the Firm. Strategic Management Journal 5: 171–180CrossRefGoogle Scholar

Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  • Pierre-Jean Benghozi
  • Laurent Gille
  • Alain Vallée

There are no affiliations available

Personalised recommendations