Fabrizio, Kira R.; Tsolmon, Ulya - In: The Review of Economics and Statistics 96 (2014) 3, pp. 662-675
The Schumpeterian opportunity cost hypothesis predicts that firms concentrate innovative activities in recessions. However, empirical evidence suggests that innovative activities are procyclical. Theory proposes that firms shift R&D investments and innovation from recessions to booms to maximize...