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We study the behavior of a firm that consistently maximizes a misspecified profit function. We provide an equilibrium concept where the misspecification error remains undetected. We examine the uniqueness and stability of the equilibria. The model of the price-taking firm belongs to this class....
Persistent link: https://www.econbiz.de/10013186353
In a Cournot oligopoly set up with constant marginal cost and linear demand, innovation is rewarding. In this paper we … work with a Cournot oligopoly framework with increasing marginal cost and linear demand and show that innovation may not be … interaction we attempt to capture and explain is the one of technology with the possibility of innovation via the intensity of …
Persistent link: https://www.econbiz.de/10012263851
This paper introduces dynamics in the R&D to innovation and innovation to productivity relationships, which have mostly … individual effects and idiosyncratic errors correlated across equations and that differ in the way innovation enters the … Community Innovation Survey. The results provide evidence of robust unidirectional causality from innovation to productivity and …
Persistent link: https://www.econbiz.de/10009764446
linked fields. Our analysis uses 1.8 million U.S. patents and their citation properties to map the innovation network and its … strength. Past innovation network structures are calculated using citation patterns across technology classes during 1975 … predictive power on future innovation after 1995. This pattern is consistent with the idea that when there is more past upstream …
Persistent link: https://www.econbiz.de/10011557905
may even reduce welfare. The reason is that it crowds out proprietary innovation which on net may reduce total innovation … in the long run. These effects would be reinforced if philanthropical innovation diverted people from other productive …
Persistent link: https://www.econbiz.de/10011409970
Understanding the factors that may produce a sustained rate of innovation is important for promoting economic … development and growth. In this paper, we examine the role of human capital in firms' innovation by using a large sample of … small and medium sized cities. Patent applications are used as the measure of innovation. Human capital indicators used …
Persistent link: https://www.econbiz.de/10011615502
-wage countries, especially China. Does this competition hurt or help innovation by firms? This paper studies the effect of the surge … in imports from China on innovation in the US manufacturing sector. We combine patent, firm and trade data during 1990 … positive effect on firm innovation, as measured by citation-weighted patent applications. This positive effect persists when we …
Persistent link: https://www.econbiz.de/10011688170
We examine the Nash equilibria of a game where two national governments set patent breadth strategically. Broader patents make R&D more attractive, but the effect on static efficiency is nonmonotonic. In a North.South model, where only the North can innovate, harmonization of patent breadth...
Persistent link: https://www.econbiz.de/10011637630
In this paper we replicate most of the stylized facts characterizing the decline in business dynamism in the USA highlighted by Akcigit and Ates (2021) and provide an explanation of their emergence by means of a macroeconomic agent-based model populated by two types of firms: innovators who...
Persistent link: https://www.econbiz.de/10014383652
Bavarian State Government. The purpose of the initiative was to create a Bavarian-wide innovation network in support of state … the likelihood of innovation by a firm in the targeted industry by 4 to 7 percentage points. However, this effect is …
Persistent link: https://www.econbiz.de/10003790767