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 …

process innovation. There are strong reasons why an efficient economy ought to concentrate both job creation and destruction …

quality, follow-on innovation. Winning a first patent boosts a startup's subsequent growth and innovation by facilitating …