-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated inside firms …, which lowers the opportunity cost of innovation, generating an additional trapped factor effect. Starting from a baseline …

We analyze how expropriation risk reduces incentives for innovation and reallocates resources from the innovative … risk, such as corruption, negatively impacts innovation by reducing R&D expenditure, human capital in R&D, number of … highlight the detrimental effects of expropriation risk on innovation and economic development at the country level …