Booming innovation often coincides with intense speculation in financial markets. Using over a million patents, we … document two ways the market valuation of innovation and its economic impact become disconnected during bubbles. Specifically …, an innovation raises the stock price of its creator by 40% more than is justified by future outcomes. In contrast …

hypothesis is true, the variance of the innovation in the stock price is bounded above by a certain function of the variance in … the innovation in the dividend. The bound is valid even if prices and dividends are nonstationary.The inequality is used … stock price innovation variance exceeding its theoretical upper bound by a factor of as much as twenty. The rejection is …

The effect of financial crises on innovation is an unsettled and important question for economic growth, but one … that local distress caused a sudden and persistent decline in patenting by the largest organizational form of innovation at …. Despite this, we find that innovation during crises can be more resilient than it may appear at first glance. First, there is …

We test how market overvaluation affects corporate innovation. Estimated stock overvaluation is very strongly …

We quantify the effect of a significant technological innovation, shale oil development, on asset prices. Using stock …