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 …

from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the … option of selling to an incumbent increases innovation incentives for entrepreneurs when network effects are strong and … necessarily restrict innovation incentives. We also show that network effects promote acquisitions over entry and that the …

dirty innovation and production; (ii) optimal policy involves both .carbon taxes. and research subsidies, so that excessive … the switch to clean innovation under laissez-faire when the two inputs are substitutes. Under reasonable parameter values …

The geographical sources of innovation of firms have been hotly debated. While the traditional view is that physical … survey of the level of innovation of 1604 firms of more than 10 employees located in the five largest Norwegian city … innovation and b) the factors behind the propensity to innovate in Norwegian firms. The results stress that while interaction …