▪ Antitrust policy is at a crossroads, stuck between static approaches to regulating competition that fail to adequately account for the central role that innovation plays in the economy—not just in powering growth, but in disrupting market power.

▪ Antitrust policy also must recognize that market power is critical for innovation, because it enables investment in research and development to bring new ideas to market.

▪ Innovation-based antitrust thus requires a dynamic approach to assessing markets, understanding that perfect competition is the enemy of good competition, whereas imperfect competition is the source of innovation.

▪ Adopting a dynamic approach to antitrust will require reforming the tools and metrics that regulators use to define and assess markets to better understand potential competition and follow the general rule of reason in enforcing antitrust laws.

▪ Principles of dynamic antitrust suggest that enforcement priorities focus on cartels and collusive practices over unilateral conduct, and focus on certain horizontal mergers over vertical and conglomerate mergers.

▪ Institutional reforms should ensure antitrust agencies focus on the long-term impact of enforcement and keep pace with the evolution of global markets.