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This chapter begins by defining innovation markets, which are markets for research and development (R&D). It then sets forth the critiques that have been leveled against the markets. It proposes a new five-part test for the antitrust enforcement agencies—the U.S. Department of Justice (DOJ) and FTC—to apply to innovation markets. The test improves the current analysis by replacing the seemingly ad hoc approach with a comprehensive framework based on the Merger Guidelines. It also breaks new ground in considering not just the number of firms in research and development but also their respective stages of U.S. Food and Drug Administration (FDA) review. The chapter provides background on preclinical studies as well as clinical trials. It concludes by presenting the results of five case studies from the past two decades—four mergers that the FTC challenged and one that it did not.

Intellectual property (IP) maintained its predominance over antitrust in the first decade of the 21st century. This chapter starts by looking at Microsoft, the most prominent antitrust case in recent years, exploring the IP aspects of the U.S. and European Union cases. It then examines innovation markets, standard-setting organizations, and patent pools before concluding with settlements and other activity in the pharmaceutical industry.

This chapter examines the tools, participants, and tensions associated with open innovation projects. It explains three types of the innovators in open innovation: core inside innovators, outside innovators and peripheral inside innovators. It describes innovation contests, innovation markets, communities, toolkits, and technologies that leaders might use to increase smart contributions to their innovation efforts. This chapter also highlights the need for innovative leaders to learn from those who have successfully balances open and closed innovation.

We have recently seen the entry of a small number of for-profit providers into the English system of higher education. This has been stimulated by the Coalition Government attempting to diversity the provision of higher education. Government support has taken four concrete forms: new providers may be granted degree-awarding powers, they can acquire the university title, they need to have no more than 1,000 full-time equivalent students to be eligible to claim that title, and their students can assess the Student Loans Company for financial support. In return the new providers enter the regulatory framework, which brings them closer to the publicly-funded sector. Meanwhile, the publicly-funded institutions increase their levels of private funding while some of them set up privately-funded ‘off-shoots’. The chapter after covering these developments examines the much larger for-profit sector in the US, raising the question of whether developments in England will follow a parallel course.

This chapter summarizes and empirically evaluates new regulatory policies as well as market innovations in the financial sector and their potential impact on SME financing. Using survey and balance sheet data for European SMEs, we find empirical evidence in line with the existing literature highlighting a recent deterioration in bank-based SME financing. More importantly, we provide empirical evidence suggesting that the negative macroeconomic effects of future restricted bank lending, due to new regulation, could be mitigated by policies allowing for and supporting new forms of market-based SME financing. To evaluate the financial and real effects of innovations in SME financing, we exploit the staggered introduction of SME equity and bond segments in different European countries, and show that they have been successful in providing non-bank financing to SMEs.