This paper examines the effects of uncertainty and flexible labour contracts on the Research and Development (R&D) expenditure. Using a panel of Italian manufacturing firms, we find a hump-shaped relationship between workforce flexibility and R&D outlays. Moreover, as predicted by the real...

How does market organization affect quality innovation efforts and social welfare? Three stochastic dynamic market structures considered are monopoly, duopoly, and social planning. Products can be either linearly or nonlinearly substitutable. The introduction of a step function allows richer...

This paper examines the effect of salvage market on strategic technology choice and capacity investment decision of two firms that compete on the amount of output they produce under demand uncertainty. A game theoretic model applies such that in the first stage firms choose their production...

The paper focuses on empirical analysis of major factors that determine innovation activities of Russian manufacturing firms during the crisis. We presume that the crisis has ambiguous effects on firms’ behaviour, on one hand limiting their financial capabilities to invest into new products...

The debate on competition and innovation has produced a wide range of theoretical and empirical findings. Recently, corporate governance quality has emerged as an additional factor that may complement or substitute for competition’s effect on innovation. We aim to contribute to the debate by...

Empirical evidence shows that R&D productivity decreases with firm size. I provide an explanation to this fact by developing a model of science production where heterogeneous researchers are endogenously allocated to different firms. The main assumption is that firms invest in research to...

I develop a model of science production where researchers are endogenously allocated to different sectors (for profit or non profit), and to different labs. The main assumption is that firms invest in research to increase their absorptive capacity: the ability to use and understand...

The paper presents the results of 2-year survey conducted in 2011-2012 among Russian universities and companies who jointly implement R&D projects aimed at development of high-tech manufacturing. The joint projects represent a new government instrument to stimulate the development of linkages...

This paper investigates sources of product or process innovation, such as investments in research and development, machinery, personnel training and management systems, by examining microdata from eight European countries. We pay particular attention to the effect of research and development in...

This paper presents an analysis of the crucial relationship between innovation, productivity, and export in SMEs. The primary aims of this study are 1) to evaluate the role of innovation in the premium export; and 2) to test the hypothesis of firm conscious self-selection on willing to export....