David Teece on Static & Dynamic Competition
In this episode, David J. Teece, Thomas W. Tusher Professor in Global Business & Faculty Director of the Tusher Center for the Management of Intellectual Capital, at the University of California Berkeley Haas School of Business, discusses his draft article "Big Tech, Big Data and Competition Policy: Favoring Dynamic Over Static Competition," which he co-authored with Nicolas Petit. Teece begins by explaining the concepts of static and dynamic competition. He observes that conventional competition policy has focused on static competition, and argues that is a mistake, because dynamic competition produces much larger long-terms gains. He suggests that policy should focus on long-term consumer welfare and the encouragement of dynamic capabilities. Teece is on Twitter at @David_J_Teece.