distorting innovation decisions. When agents hold recursive preferences, misallocation-driven low-frequency growth fluctuations …

-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by …In this paper, we design two laboratory experiments to analyze the causal effects of competition on step … that increased competition leads to a significant increase in R&D investments by neck-and-neck firms. Second, increased …

(process) R&D and quality (efficiency), and find strong evidence that process innovation is related to higher efficiency, while … product innovation is associated with higher product quality. We discuss the welfare implications of these two distinct … innovation activities …

Economists have often viewed the adoption of artificial intelligence (AI) as a standard process innovation where we … innovation and its adoption may confer positive externalities on non-adopting firms. In the long-run, AI adoption is shown to …

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 …

This paper contributes to the literature on innovation policies and institutional theory on conditions for effective … yield broader implications for organization and innovation …

Despite the rapid pace of innovation in information and communications technologies (ICT) and electronics, aggregate US … stems in part from an unbalanced sectoral distribution of innovation over the last several decades. Because an industry …'s success in innovation depends on complementary innovations among its input suppliers, rapid productivity growth that is …