effect on innovation. We develop a simple "trapped factor" model of innovation that is consistent with these empirical …

-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated inside firms …, which lowers the opportunity cost of innovation, generating an additional trapped factor effect. Starting from a baseline …

If innovation is to be subsidized, a natural place to start is to increase the quantity and quality of human capital …. Innovation, after all, begins with people. Simply stimulating the "demand side" through R&D subsidies and tax breaks may only … can both directly increase innovation and reduce its cost. This paper examines the evidence on human capital policies for …

Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …. We then quantitatively fit the parameters of the model to the data, finding that innovation at the macro level is about 5 …

effect on innovation. We develop a simple "trapped factor" model of innovation that is consistent with these empirical …