We model technological and financial innovation as reflecting the decisions of profit maximizing agents and explore the … also engage in the costly, risky, and potentially profitable process of innovation: Financiers can invent more effective … processes for screening entrepreneurs. Every existing screening process, however, becomes less effective as technology advances …

pursuits of firms and their employees. Using patents and citations as proxies for innovation and a time-varying index of labor … laws, we find that innovation is fostered by stringent labor laws, especially by laws governing dismissal of employees. We … exploit staggered country-level law changes. We also find that stringent labor laws disproportionately influence innovation in …

paper, we analyze a two-stage innovation game between one incumbent and a large number of entrants. In the first stage … innovation. In the second stage, successful entrants bid to be acquired by the incumbent. We assume that entrants cannot survive …&D approaches than the incumbent and are more likely to generate the highest value innovation. Thus, the need of entrants to be …

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

innovation to the financiers through patenting and prototyping activities, right in the early stages of the venture. We build a …

We examine the origins and outcome of entrepreneurship on the basis of exceptionally comprehensive Norwegian matched … worker-firm-owner data. In contrast to most existing studies, our notion of entrepreneurship not only comprises self …-employment, but also employment in partly self-owned limited liability firms. Based on this extended entrepreneurship concept, we find …