, and reallocation of capital. This finding applies mainly for obsolescence of core innovation and embodied innovation, and … profits of obsolescent firms. The measure contains incremental information about firm innovation relative to measures focusing … on new innovation …

We study the optimal allocation of R&D resources in an endogenous growth model with an innovation network, through … more R&D toward key sectors that are upstream in the innovation network. Second, we extend to an open-economy setting and … illustrate an incentive for countries to free-ride on fundamental technologies: an economy more reliant on foreign knowledge …