The thesis addresses the interplay between innovation incentives and competition. In its Dow/DuPont merger control decision, the European Commission based far-reaching remedies on the newly developed concept of innovation competition. The concept refers to the parties' general ability to innovate independently of identifiable products or specific research and development activities. The author places the concept of innovation competition in a broader context and examines the applicability of the underlying considerations in the context of Articles 101 and 102 TFEU.