Innovation is important for firm performance and broader economic growth. But breakthrough innovations necessarily … effect on the rate of breakthrough innovation and the profitability of firms …

Existing theories and empirical research on how innovation occurs largely assume that innovativeness is an inherent … differently than those who do self-select into innovating. To test these questions, we designed and implemented an innovation …

an induced innovation externality. This alternative mechanism, by contrast, causes people to devote an inefficiently high … level of self-protection. As an empirical example of this externality, we analyze the innovation induced by the obesity … epidemic. Obesity is associated with an increase in the incidence of many diseases. The induced innovation hypothesis is that …

opportunities. The paper also provides new evidence on induced pharmaceutical innovation. In both cases we use the change in the … demographic structure of the market (measured by age structure and obesity prevalence) to test the induced innovation hypothesis … pharmaceutical innovation responds to aging- and obesity-induced changes in potential market size …

Successful innovation is essential for the survival and growth of organizations but how best to incentivize innovation … significantly more novel innovation relative to a compensation scheme that offers the same total compensation, but shared across the …