Competition is key to turning British scale

As other countries reap the benefits of home-grown UK talent, the CMA is committed to cracking the UK’s scale-up challenge, writes Sarah Cardell

Investment is crucial to economic growth and prosperity. But what role does competition play in relation to that investment? Does tougher competition spur firms to invest more, or does it scare off the largest players? New analysis from our Microeconomics Unit suggests the answer is nuanced.

But these initial findings matter, because they start to show how competition can be a powerful catalyst for investment – if we understand how its effects vary across the business life-cycle.

Start-ups live or die through access to finance, so competitive capital markets are critical. More funding sources mean more ventures get backing. And these startups