endogenous share opts for innovation and faces credit constraints in the subsequent expansion phase. We emphasize four results …: (i) R&D subsidies not only encourage innovation but also relax finance constraints and help innovative firms to exploit … investment of constrained firms by reducing free cash-flow and thereby discourage innovation. (iii) A revenue neutral increase in …

regard to the capital gains tax, innovation subsidy, public R&D spending and other policy initiatives. …

We develop a theory of innovation for entry and sale into oligopoly, and show that an invention of higher quality is …

We study the interplay between transportation infrastructure, knowledge flows, and innovation. Exploiting historical … variation, we estimate the effect of U.S. interstate highways on regional innovation. We find that a 10% increase in a region … flow of local knowledge and allow innovators to access more distant knowledge inputs. This finding suggests that …

entrepreneurs’ choice of riskiness (quality) of an innovation project, and on their mode of commercializing the innovation (market …

option of selling to an incumbent increases innovation incentives for entrepreneurs when network effects are strong and … necessarily restrict innovation incentives. We also show that network effects promote acquisitions over entry and that the … entrepreneur has strong incentives to invest in the initial user base of the innovation. …