We develop a general equilibrium model of vertical innovation in which multiple firms compete monopolistically in the … the product cycle as it is superseded by further innovations. The intrinsic reason that innovation happens in our economy … is not one of displacing the incumbent; rather, innovation is a means to differentiate oneself from existing firms and …

We develop a model of vertical innovation in which firms incur a market entry cost and position themselves in the … motives for innovation in vertically differentiated markets …

traces the sources of TFP growth in the UK over the last two decades through the lens of a structural model of innovation …, using registry data on the universe of firms. The dominant innovation source in the pre-GFC decade were improvements by … recovery, survey data suggests that creative destruction (i.e., innovation replacing other firms' products) is expected to gain …

Empirical studies have uncovered an inverted-U relationship between product-market competition and innovation. This is … inconsistent with the original Schumpeterian Model, where greater competition reduces the profitability of innovation. We show that …

); innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are …

); innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are …