Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …. We then quantitatively fit the parameters of the model to the data, finding that innovation at the macro level is about 5 …

the U.S. Air Force Small Business Innovation Research (SBIR) program that transitioned from "Conventional topics," which … innovation even in less specific Conventional topics. The results suggest that government (and perhaps private sector) innovation …