with idiosyncratic firm productivity, and entry and exit. Our model features productivity gains due to selection and … cleansing along the entry and exit margins. Models with homogeneous firms fail to account for the selection and cleansing …

from negative externalities, i.e. spillovers to other firms, and hence imitation could be induced. To preempt imitation … highlight the trade-off of patenting by setting up a recursive system of equations on knowledge leakage and imitation that … functioning of the contemporary patent system. We find that patenting firms are being less confronted with imitation. The effect …