This paper analyzes equilibrium, dynamics, and optimal decisions on the factor bias of innovation in a model of induced … innovation. In a model with full employment, we show that (a) if the elasticity of substitution is always less than or greater …, there will be a bias towards excessive labor augmenting innovation, resulting in too high unemployment, with convergence to …

innovation. After identifying pervasive market failures in innovation, it explains why those associated with the Nordic model may … be particularly conducive to innovation, and demonstrates that, in general, the optimal policies of the leader should … industrial policies, public investments, and systems of social protection), not only leading to more innovation, but ensuring …

The pace of innovation is related both to the level of investment in innovation and the pool of knowledge from which … and design of IPR affects the extent to which any innovation adds to or subtracts from the pool of ideas that are … lead to a lower pace of innovation, and more generally, that long run effects may be the opposite of the short run effects …

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 …