This paper introduces epsilon-stability as a generalization of the concept of stochastic stability in learning and evolutionary game dynamics. An outcome of a model of stochastic evolutionary dynamics is said to be epsilon-stable in the long-run if for a given model of mistakes it maximizes its...

Learning and stochastic evolutionary models provide a useful framework for analyzing repeated interactions and experimentation among economic agents over time. They also provide sharp predictions about equilibrium selection when multiplicity exists. This paper defines three convergence measures,...

China and India are emerging as major new entrants in the international software industry. Both are rapidly learning through outsourcing with multinational enterprises from advanced nations. Yet, their paths to this dynamic sector are very different. Chinese software firms have focused on their...

What do we know about the relationship between innovation and productivity among firms? The workhorse model of this relationship is presented and the implications of analysis using this model and the usually available data on product and process innovation are derived. The recent empirical...

This paper studies the impact of the R&D offshoring of multinational enterprises on the firms in host emerging economies. We develop a two-stage non-cooperative game to analyze the strategic interaction between multinational and host country enterprises engaged in R&D investment. An empirical...

In developing countries, innovation is to a large extent a matter of adoption of advanced technologies but also of conducting internal R&D to be able to better assimilate existing technologies. This paper, based on firm level data from 24 developing countries, examines the roles of internal R&D...

We study whether there is scope for using subsidies to smooth out barriers to R&D performance and expand the share of R&D firms in Spain. We consider a dynamic model with sunk entry costs in which firms’ optimal participation strategy is defined in terms of two subsidy thresholds that...

Statistics Finland added questions to the Finnish Community Innovation Survey CIS for 2010 on the importance of user innovation. For firms engaged in innovation activity during the three year period, 2008-2010, 30 per cent reported that user modified products were of high or medium importance to...