Our paper presents a new rationale for innovation by incumbents. We show that the possibility to price … steady state equilibrium with positive innovation rates of both incumbents and challengers. Beyond its novelty, this result … innovation rates, and by extension on the economic growth rate. We demonstrate that a higher share of the population being poor …

shares for more than one quality, hence allowing for the emergence of multi-product firms within a vertical innovation … innovation by incumbents. I am then also able to analyze the impact of inequality both on long-term growth and on the allocation …

introduction). However, what really matters in explaining ICT productivity is the level of innovation the new capital embodies. In …

This paper presents a dynamic partial equilibrium model that endogenizes firms' investment decision on innovation …: product innovation causes horizontal expansion growth, and process innovation causes vertical expansion growth. Market … structure in different markets emerges as a consequence of different investment on innovation opportunities. Main variables that …