entrepreneurs’ choice of riskiness (quality) of an innovation project, and on their mode of commercializing the innovation (market … entry versus sale). Limited loss offset provisions in the tax system induce entrepreneurs innovating for entry to choose … systematically favor market entry of entrepreneurs can thus lead to welfare losses due to inefficient quality choices, despite …

This Paper studies the size and number of industrial clusters that will arise in a multi-country world in which … welfare maximum, showing that the equilibrium will generally have clusters that are too small, while there are possibly too … too small clusters. …