We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A …

This paper studies a simple model of experimentation and innovation. Our analysis suggests that patents may improve the … project to implement. A successful innovation can be copied by other firms. Symmetric equilibria (where actions do not depend … equilibria). In contrast to patents, subsidies to experimentation, research, or innovation cannot typically achieve this …

. After linking these ideas to the induced innovation literature of the 1960s and the more recent directed technological …

the choice between incremental and radical innovation, and on how managers of different ages and human capital are sorted …-country evidence consistent with this pattern. Our measures of creative innovations proxy for innovation quality (average number of …

We study a dynamic general equilibrium model where innovation takes the form of the introduction new goods, whose … production requires skilled workers. Innovation is followed by a costly process of standardization, whereby these new goods are … substitution between goods and other parameters. Third, we show that the interplay between innovation and standardization may lead …