Tim Harford on Monopoly and Innovation

Tim Harford, the Undercover Economist has written an excellent article here on the impact of large scale monopolistic businesses on our economic welfare. Originally published in the Financial Times, you can read it in full by clicking this link to Tim's website. http://timharford.com/2014/08/monopoly-is-a-bureau...Are highly profitable monopolies a crucial source of innovation (improvements in dynamic efficiency)? Or should we be looking for rigorous competition policy to address the X-inefficiencies often associated with established market dominance?Tim writes "The ferocious cut and thrust of smaller competitors seems a more reliable way to produce many of the everyday innovations that matter."