The Constitution of Innovation: A New European Renaissance An academic paper examining Europe's innovation challenges and proposing a constitutional framework for economic renaissance.

Must read by @lugaricano.bsky.social and @competitionprof.bsky.social.

constitutionofinnovation.eu

The Constitution of Innovation: A New European Renaissance An academic paper examining Europe's innovation challenges and proposing a constitutional framework for economic renaissance.

Which will it be?

The future of Europe is ours, we can decide.

Follow us. Future activities are planned, incl workshops on our 6 proposals.

🔗 constitutionofinnovation.eu
#FutureOfEurope #EconomicGrowth

6/6

The moment is now. Europe stands at a crossroads:

💊 Blue pill: Path dependency, decline, and irrelevance.
💊 Red pill: Rebirth, dynamism, and a new industrial revolution

5/6

These myths are holding us back.

Europe must confront trade-offs, face empirical reality, and make the hard choice: prosperity over stagnation

4/6

It’s time to stop:

❌ Defending legacy assets
❌ Propping up zombie firms
❌ Falling for self-aggrandizing superstitions like the “Brussels effect” or “integration through law”

3/6

Our message is simple: Less, Better.

Europe doesn’t need more regulation, more bureaucracy, or more mission creep. It needs to focus on what made it great: economic dynamism, open markets, and a culture that rewards innovation

2/6

The Constitution of Innovation: A New European Renaissance An academic paper examining Europe's innovation challenges and proposing a constitutional framework for economic renaissance.

Decline is a choice, not a fate.

This week, Luis Garicano @siliconcontinent.substack.com.web.brid.gy and Bengt Holmström (MIT), we launched The Constitution of Innovation - a a new European renaissance.

We make 6 proposals.

Read them at constitutionofinnovation.eu

#Europe #Innovation 1/6

My latest paper explains why the US v Google case identified monopoly power on the wrong side of the bargaining table. Comments welcome 🙏 papers.ssrn.com/sol3/papers....

This is so uplifting. There are so many strong symbols to celebrate behind the award: democracy, individual freedom, free markets, and institutions like Nobel that remain independent from political pressure.

Am conducting a survey: what did the digital economy break?

- local journalism
- information trustworthiness
- …

Please help me complete

Ax:son Johnson Scholarship This scholarship is for applicants from Sweden with a demonstrated interest in international security and German-Swedish relations.

Hey students from Sweden 🇸🇪: here you can find information for three full scholarships to come to study international security at the Hertie School (@hertieschool.bsky.social, @hertiesecurity.bsky.social) in Berlin.

www.hertie-school.org/en/study/fun...

ASML-Mistral is Europe’s dream tech tie-up. Can it deliver? Two tech champions face the daunting task of keeping Europe on the AI map.

Our professor @competitionprof.bsky.social quoted in Politico Europe on the landmark ASML–Mistral deal and its implications for European tech sovereignty 🇪🇺💻

www.politico.eu/article/asml...

How to save the American university As Trump threatens funding and public trust plummets, US schools are in the fight of a lifetime. This is how they can survive – with their souls intact

The only value of a university is structural, not substantive. Very nice piece from former @eui-eu.bsky.social law professor Dennis Patterson on academic neutrality www.theguardian.com/us-news/ng-i...

It’s that time to repost “understanding market power” - a full guide to the tricky but essential economics behind antitrust law. If you teach or study antitrust this fall, feel free to use it. Feedback is very welcome to help me improve the next version papers.ssrn.com/sol3/papers....

Coup de foudre. Le sublime atteint sous la plume de l’empereur Hadrien. Ne naît-on littérairement qu’après sa première rencontre avec Marguerite Yourcenar?

Guess who has bargaining power here.

One day against the DMA, the next one against. It’s like his support to Trump. At least Musk is consistent in inconsistency 😁.

Check out today’s exhibit on misinformation: @economist.com subtitle suggesting a baseline of irrelevance at the EUI.

Debate.

Encouraging to see Brussels push back on political interference in legitimate bank M&A.

Less ideal that consolidation is unfolding along national lines.

The big question: will stronger national champions finally unlock real cross-border banking in the EU?

OFC. I guess the literature suggests algo collusion less prone to deviation.

Can’t be true!

Legal scholars claim Amazon dominates without rivals.

Economists claim algorithms collude.

When theory fails to match reality… ignore reality?

Big data, big power … big what exactly? Was a delight to discuss with @ivanenadic.bsky.social. Looking fwd to our next coffee.

As @jeffjarvis.bsky.social might say: blaming the decades-old collapse of local journalism on one company - no matter how big - is grotesque. Correlation isn’t causation, even if you’ve got a Nobel Prize.

The legal illnesses of the EU surface from this 🔥 thread by @lugaricano

1️⃣ Integration through law bureaucratised Europe breaking our ability to build

2️⃣ Infatuation w/ a European 3rd way led to dismiss existing solutions that scale

works across energy, health, digital, …

Bottom line? The case for rule-based antitrust policy is fairly straightforward. Unfortunately this established wisdom is being forgotten on account of a fixation on business size. Time to reread the consistently classic Kydland and Prescott paper from 1977 😃 10/n

In turn, the risk premium on acquisitions rises, valuations fall, and capital for innovation dries up. Worse, enforcers may extract disproportionate remedies upfront, knowing they can later revisit deals 9/n

If the FTC and US DOJ use discretion to renege on the rule-based policy of non reversals of approved mergers, then the risk is that competitors of acquirers that did not manage to seize good assets use section 2 and the antitrust enforcers as an appeals process 8/n

What is the unintended consequence you may ask? It takes thinking to see one, but it's fairly clear. In digital, there is a high rate of new firm creation and entry. Hence, there’s a vibrant market for corporate control, where firms compete for acquisition of the best assets 7/n

Now, back to antitrust: if the FTC or US DOJ is given discretion to unwind deals years later using antitrust law, merger approval becomes un-credible. Cleared no longer means cleared 6/n