We develop a theory of innovation for entry and sale into oligopoly, and show that an invention of higher quality is …

entrepreneurs’ choice of riskiness (quality) of an innovation project, and on their mode of commercializing the innovation (market …

option of selling to an incumbent increases innovation incentives for entrepreneurs when network effects are strong and … necessarily restrict innovation incentives. We also show that network effects promote acquisitions over entry and that the … entrepreneur has strong incentives to invest in the initial user base of the innovation. …

This Paper develops a framework for testing discrete complementarities in innovation policy using European data on … obstacles to innovation. We propose a discrete test of supermodularity in innovation policy leading to a number of inequality … constraints. We apply our test to two types of innovation decisions: to innovate or not, and if so, by how much. We find that …

Community Innovation Survey (CIS) data for 14 European countries. Our model incorporates three groups of variables which could … firm, the second group measures different innovation activities and the third group describes the internationalisation of …