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 …

We construct a model of the product cycle featuring endogenous innovation and endogenous technology transfer …, competitive entrepreneurs may devote resources to learning the production processes that have been developed in the North. There …

We develop a two-country model of endogenous innovation and imitation in order to study the interactions between these … maximizing entrepreneurs. The steady-state equilibrium is characterized by constant aggregate rates of innovation and imitation … learning …

analysis proceeds in stages. It begins with an exogenous rate of innovation in order to focus on the first two components. The … last two components are added by endogenizing the rate of innovation. Finally, the paper considers the role of foreign …

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 …