The slowing pace of economic growth in the US and Europe have rekindled fears of reduced innovation and prompted calls for institutional changes meant to increase returns on spending for research and development. This column uses the case of the US interwar aircraft industry to suggest some unforeseen hazards of such change. It recommends considering the design of innovation and antitrust policy in tandem, especially where attempts to provide incentives for innovation may alter the extent of competition and endogenously reconfigure market structure.