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Using a dynamic model of a step-by-step innovation race between financially constrained firms, I study how financial … constraints affect innovation activity. The novel theoretical results derive from an analysis of the interaction between the … incentive effect of competition on innovation and the effect competition has on the degree of credit rationing. I find that the …
Persistent link: https://www.econbiz.de/10010745834
Sales are a widespread and well-known phenomenon that has been documented in several product markets. Regularities in such periodic price reductions appear to suggest that the phenomenon cannot be entirely attributed to random variations in supply, demand, or the aggregate price level. Certain...
Persistent link: https://www.econbiz.de/10010884541
Sales are a widespread and well-known phenomenon documented in several product markets. This paper presents a novel rationale for sales that does not rely on consumer heterogeneity, or on any form of randomness to explain such periodic price fluctuations. The analysis is carried out in the...
Persistent link: https://www.econbiz.de/10011071258
This paper tests for the importance of cash flow on investment in fixed capital and R&D using firm-level panel data in two countries between 1985 and 1994. For German firms, cash flow is not informative in simple econometric models of fixed investment or R&D. In identical specifications for...
Persistent link: https://www.econbiz.de/10010884496
This paper analyzes differences in R&D spending and in the impact of R&D on productivity between German and UK firms. We confirm that German firms spend significantly larger amounts on R&D than their UK counterparts, even after controlling for firm size and industry effects. Using a dynamic...
Persistent link: https://www.econbiz.de/10010745353
This paper analyses a dynamic game of investment in R&D or advertising, where current investments change future market conditions. It investigates whether underinvestment can be supported in equilibrium by the threat of escalation in investment outlays. When there are no spillovers, or there is...
Persistent link: https://www.econbiz.de/10010745545
efficiency; provides further insight into why Open Source Software is a successful model of innovation and development in digital …
Persistent link: https://www.econbiz.de/10010746188
due to a weakness in technological innovation despite a high quality science base. This includes comparatively low and …
Persistent link: https://www.econbiz.de/10010745223
effect which becomes more pronounced when we account for the endogeneity of innovation. This is the case for three different … count measures of innovation – a global measure of innovation and measures for labour innovations and capital innovations …
Persistent link: https://www.econbiz.de/10010745414
This paper examines the relative influence of domestic and foreign renewable energy policies on innovation activity in … new capacities by increasing their innovation effort. However, the effect on innovation of the marginal wind turbine …
Persistent link: https://www.econbiz.de/10010745607