The Adverse Effects of Technological Innovation under WTO Subsidy Rules

The WTO concluded in 2012 that subsidized aeronautical research and development (R&D) gave Boeing a head start in product development that caused serious prejudice to the interests of Airbus but later, in 2019, it could not decide how long that head start had lasted. Meanwhile, the WTO concluded...

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Bibliographic Details
Published inWorld trade review Vol. 19; no. 4; pp. 511 - 530
Main Author Kennedy, Matthew
Format Journal Article
LanguageEnglish
Published Cambridge, UK Cambridge University Press 01.10.2020
Subjects
Aeronautics
Aircraft industry
Beneficiaries
Boeing airplanes
Climatic changes
Composite materials
Energy consumption
Energy efficiency
Innovations
Manufacturers
Manufacturing
Operating costs
Prejudice
Prices
Product development
R&D
Research & development
Subsidies
Technological change
Technological innovations
Technology
World Trade Organization
United States > US
innovation
Airbus
Boeing
WTO
research and development (R&D)
subsidies
aircraft
SCM Agreement
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Summary:The WTO concluded in 2012 that subsidized aeronautical research and development (R&D) gave Boeing a head start in product development that caused serious prejudice to the interests of Airbus but later, in 2019, it could not decide how long that head start had lasted. Meanwhile, the WTO concluded in 2018 that launch aid for Airbus aircraft led to innovations that also improved later aircraft models, thereby contributing to serious prejudice to the interests of Boeing. Both conclusions relied on a causation analysis that considered the effects of technological innovation, which makes subsidies used for R&D particularly vulnerable to challenge. This novel analysis may be too broad for the actionable subsidy disciplines of the SCM Agreement.
Bibliography:Informit, Melbourne (Vic)
WORLD TRADE REVIEW, Vol. 19, No. 4, Oct 2020, 511-530
ISSN:1474-7456
1475-3138
DOI:10.1017/S1474745619000326