This paper compares the innovation performance of established pharmaceutical firms and biotech companies, controlling for differences in the scale and scope of research. We develop a structural model to analyze more than 3,000 drug R&D projects advanced to pre-clinical and clinical trials in the...

By employing 1995-2000 data on European regions we construct an index of regional openness based on the share of hotels on population and the share of population that speaks a second language. This index has an impact on regional performance after controlling for technological capabilities,...

Knowledge-intensive activities are bound by imperfections that limit the provision of incentives, particularly asymmetric information about inputs and unclear definition of outputs. Thus, performance-based incentives are not possible. We then model a contract in which the firm can use the...