Ben Schroeter

🚨 New working paper alert 🚨
Missing summer — and the Tour de France? Don’t worry, we got you covered. 🚴‍♂️🚴‍♂️🚴‍♂️
In this paper, we show that being on the route of Tour de France reduces far-right voting. osf.io/preprints/so...

This looks great; will read the full paper now. I have long believed that we need more identity instilling sporting events to reinforce a sense of community.

Spain needs an abundance agenda.

The Cato Institute came to the same conclusion. open.substack.com/pub/alexnowr...

Strategy beyond Markets | Substack How companies create, capture, and protect value in an age of polarization. Click to read Strategy beyond Markets, a Substack publication.

Launching a new side project: a newsletter on non-market strategy. We’ll dive into everything from lobbying to how polarization shapes corporate success. If you’re curious about the forces beyond markets that drive business outcomes, subscribe here: www.strategybeyondmarkets.com

Fair enough & thank you.

This article intro needs to become a meme: „Like the Tyrannosaurus rex in Jurassic Park, EU officials hunt by movement. If part of the economy is growing fast, they’re rapidly on its tail.“

on.ft.com/3RDAIJ9

I think it also explains why Europe's corporate landscape is more static. Of the top 100 firms in the world, only two EU firms were founded in the last 25 years. All other EU firms in that list were spin-offs from existing firms (e.g. Philipps -> ASML, Siemens -> Infineon). /end

This gives non-EU firms a leg-up in competition and once the regulation is in place and barriers to entry are higher, reduces the likelihood of success of EU firms. While a lot of EU regulation (e.g. DMA, P2B, DSA) is concerned with promoting fair competition, we end up with the opposite result. 7/x

But I am sceptical that most EU regulation achieves net-positive outcomes for EU firms. EU firms have a harder time scaling. If the EU is a regulatory frontrunner in a particular area, this adds to the cost of scaling. Firms outside the EU can scale without incurring these costs. 6/x

This is not to say that regulation can never be beneficial. For example, Rösner et al show that the harmonization of the UCPD has increased cross-border commerce in Europe and therefore likely increased competition, benefitting consumers. 5/x
papers.ssrn.com/sol3/papers....

The negative impact of regulation on innovation & competition has also been shown on a more granular level. For example, Janßen et al show this for GDPR and the development of new apps. A number of papers have also shown that GDPR has mostly benefitted Meta & Co.
www.nber.org/system/files... 4/x

It also holds true for changes in regulation (as opposed to the cumulative effect of regulation). Marc Eskildsen shows that US companies in a given sector realize outsize returns in the years following an increase in regulation compared to those that experience a deregulation. 3/x

Generally, sectors that are more regulated have higher barriers to entry, less competition, and higher economic rents. James Bessen has a paper that shows the cumulative impact of regulation for the US. It's massive (see below). 2/x papers.ssrn.com/sol3/papers....

Yes, I have read it and was underwhelmed by the book (for lack of empirical evidence). My hypothesis is that it's actually all of the both (regulation AND market fragmentation, access to finance, etc) with regulation compounding the other factors. 1/x

Atomico’s „State of European Tech“ report by is out. What are the greatest challenges in the next 12 months? While access to capital is still the #1 issue, geopolitical risks and regulation feature prominently, with #AI regulation being specifically called out. Europe is leading in the wrong domain.

Lobbying is bad? Countries that are more pluralistic & offer more advocacy opportunities, rank better on ease of doing business metrics. Potential reason: smaller, more dynamic firms find it easier to lobby for innovation & startup friendly policies. Insights from a new book by Nicola Persico.

Zorgen over vestigingsklimaat: ‘Ik moet aandeelhouders uitleggen waarom ik nog in Nederland zit’ Politieke partijen hebben in de verkiezingscampagne nauwelijks aandacht voor het vestigingsklimaat, terwijl buitenlandse investeerders bezorgd zijn over recente lastenverzwaringen.

Business climate is definitely deteriorating in the Netherlands. It comes up in every conversation I have with expat friends. It’s not just financially motivated. Many don’t feel welcome anymore. I see lots of people starting to build new options outside of NL.

fd.nl/economie/149...

Seems the metaverse was a one-hit wonder.

The Dogs of War Traveling Route 232 in the days after the Hamas attacks

Such a strong text. „Compared to the parade of nonstop bullshit that constitutes life in the stagnant West, life in Israel pulsed with an inarguably real vitality […], and a transcendent and overriding sense of purpose.“
www.tabletmag.com/sections/isr...

Google: “Our relevant market includes every human being alive and online.”

Thank you, Daniel. Let’s get this party started.

Welcome @benschroeter.bsky.social, one of my go to sources for insights into EU affairs, economics and tech policy! Give him a follow! 👌