We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are … entrepreneurial effort allocated to high-quality invention projects. Using data on patents granted to small firms and individuals, we …

By merging individual data on valuable patents granted in Prussia in the late nineteenth century with county level … causal effect of human capital on income, net of the innovation channel. …

This paper investigates the choice of an intellectual protection regime for a process innovation. We set up a multi …-stage model in which choosing between patent and trade secrecy is affected by three parameters : the patent strength defined as … the probability that the right is upheld by the court, the cost of imitating a patented innovation relative to the cost of …

innovation market. If employment protection is introduced, firms’ willingness to pay for product or process innovations increases …. This shifts economic activity towards firms specializing in process and product innovation and triggers entry of new start …

innovation. We associate the strength of IPR protection with the duration of a country’s patents that are applied with national … are patents longer in the North? We also study international patent agreements by deriving the properties of an efficient … a world economy with ongoing innovation in two countries that differ in market size and in their capacities for …

This paper analyzes the optimal protection strategy for an innovator of a complex innovation who faces the risk of … imitation by a competitor. We suppose that the innovation can be continuously fragmented into sub-innovations. We characterize … the optimal mix of patent and trade secrets when the innovator faces a strict novelty requirement and can only patent a …

This paper analyzes the setting of national patent policies in the global economy. In the standard model with free … induce individual countries to select patent strengths that are weaker than is optimal from a global perspective. The paper … considerations in setting patent policies. The first two features (trade barriers interacting with firm heterogeneity) tend to reduce …

that the connection between overconfidence and innovation is more complex than the previous literature suggests. In … innovative activity. While overoptimism leads to an innovation enhancing effect, judgmental overconfidence inhibits innovation …. Our results indicate that future research is well advised to take into account that the relationship between innovation …