If redistribution is distortionary, and if the income of skilled workers is due to knowledge-intensive activities and … distorts occupational choice. We study this possibility in the context of a model with horizontal innovation, where the …

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 …

or in the knowledge sector, which designs new varieties. It is shown that if the elasticity of labor supply to the … knowledge sector is bounded, as productivity increases, the economy moves from a ‘Solovian zone’ where wages increase with …

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

countries (LDCs). It starts by discussing the consequences of IP enforcement in LDCs for global innovation and welfare in poorer …

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 …

externalities and their impact on regional innovation. We examine MSA-level patent data during the period 1975-2000 and find that … innovation output is higher in regions where large and small firms coexist. The finding is robust to across-region as well as …