According to Schumpeter, the creative process of economic development can be divided into the three distinguishable stages of invention, innovation (commercialization) and imitation. Following this theory, invention and innovation require different skills. This paper tests whether the invention...

Using unique data on Swedish multinational corporations (MNCs), this study investigates several dimensions relating to industrial R&D. The development in the latter part of the 1980s is emphasized. Between 1978 and 1990, R&D intensity of the Swedish MNCs almost doubled from about 2 to 4 percent....

When and how do entrepreneurs sell their inventions? To address this issue, we develop an endogenous entry-sale asymmetric information oligopoly model. We show that lowquality inventions are sold directly or used for entry. Inventors who sell post-entry use entry to credibly reveal information...