Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …. We then quantitatively fit the parameters of the model to the data, finding that innovation at the macro level is about 5 …

This paper estimates the social returns to investments in innovation. The disparate spillovers associated with … innovation, including imitation, business stealing, and intertemporal spillovers, have made calculations of the social returns … under conservative assumptions, innovation efforts produce social benefits that are many multiples of the investment costs …

burden mechanism suggests that the nature of innovation is changing, with negative implications for long-run economic growth …

"In advanced economies like the United States, innovation has long been recognized as a central force for increasing … socioeconomic prosperity and improving human health. Today, U.S. government policy seeks to promote innovation through a suite of … Business Innovation Research program to the National Science Foundation. This book surveys key dimensions of innovation policy …

This paper investigates the effect of export shocks on innovation. On the one hand a positive shock increases market … size and therefore innovation incentives for all firms. On the other hand it increases competition as more firms enter the … export market. This in turn reduces profits and therefore innovation incentives particularly for firms with low productivity …

for around 17% of the total increase in the top 1% income share between 1975 and 2010. Yet, innovation does not appear to … increase other measures of inequality which do not focus on top incomes. Next, we show that the positive effects of innovation … vindicate the Schumpeterian view whereby the rise in top income shares is partly related to innovation-led growth, where …