Competition, cooperation, and innovation: the catalytic effects of China’s fair competition review system

Based on the 2016 introduction of the Fair Competition Review System (FCRS) in China, this study examines the impact of administrative monopoly regulation on collaborative innovation (CI). Findings indicate that the FCRS stimulates CI by intensifying market competition, improving resource allocation, and promoting capital agglomeration. This effect is more pronounced among firms with higher levels of government favouritism, in the eastern and western regions, and in areas adopting self-review mechanisms. Moreover, both formal and informal institutions amplify the impact of the FCRS on CI. These findings reveal the catalytic role of competition policy in fostering innovation cooperation under competition pressure.