Trotz der Initiative zu Steigerung der Innovationskraft des Landes wird China nach einer Studie des ifo Instituts nicht innerhalb absehbarer Zeit zu einer »Wissensfabrik der Welt« avancieren, auch wenn der technologische Rückstand Chinas gegenüber den Industrieländern allmählich schrumpft....

The aim of this paper is to compare the price-cost margins in the pharmaceutical industry in Finland and USA. We employ data on the Finnish and the US pharmaceutical industry. The estimation is theoretically based on a modification of the conventional growth models and its extensions under...

This paper proposes a model in the spirit of Aghion et al. (2005) that encompasses the magnitude of the impact of competition on R&D according to the cost of the innovation. The effect of competition on R&D is an inverted U-shape. However, the shape is flatter and competition policy is therefore...

Technological progress is typically a result of trial-and-error research by competing firms. While some research paths lead to the innovation sought, others result in dead ends. Because firms benefit from their competitors working in the wrong direction, they do not reveal their dead-end...

Using a dynamic model of a step-by-step innovation race between financially constrained firms, I study how financial constraints affect innovation activity. The novel theoretical results derive from an analysis of the interaction between the incentive effect of competition on innovation and the...