paper, we address this question by investigating how innovation responses to a substantial policy initiative increasing … product market competition interact with the strength of patent rights. We provide empirical evidence of innovation responding … with step-by-step innovation models predicting that product market competition enhances innovation and, more importantly …

innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 … tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers … and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow …

education and the individual's IQ are controlled for; (ii) IQ has both a direct effect on the probability of inventing an … indirect impact through education. The effect of IQ is larger for inventors than for medical doctors or lawyers. The impact of … misallocation of talents to innovation …

-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by …-and-neck. All these results are consistent with the predictions of step-by-step innovation models …

for around 17% of the total increase in the top 1% income share between 1975 and 2010. Yet, innovation does not appear to … increase other measures of inequality which do not focus on top incomes. Next, we show that the positive effects of innovation … vindicate the Schumpeterian view whereby the rise in top income shares is partly related to innovation-led growth, where …

We analyze how demand conditions faced by a firm impacts its innovation decisions. To disentangle the direction of … causality between innovation and demand conditions, we construct a firm-level export demand shock which responds to aggregate … contemporaneous sales and employment for all firms, without any notable differences between high and low productivity firms. We show …