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Antitrust Enforcement and National Competitiveness

Regulators have dilemma when goal of competitive market conflicts with goal of strong economy, relative to other countries

Since mid-1980s U.S. has permitted cooperative activities among firms where appropriate to enhance their competitiveness in the global economy

The 1984 National Cooperative Research Act (NCRA) sought to balance cooperative R&D with competition by instructing the courts to use a “rule of reason”

European regulators have similarly permitted joint R&D aimed at improving the competitiveness of their industries

Regulators have also loosened rules governing joint production agreements to permit economies of scale

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