distorted R&D incentives; the deadweight loss from this distortion can be as large as the entire producer-surplus difference …

This paper studies the interactions between health insurance and the incentives for innovation. Although we focus on … inadequate incentives to innovate. Standard results in the health literature suggest that health insurance leads to the … overutilization of health care. Our study of innovation in the pharmaceutical industry emphasizes the interaction of these incentives …

competition affect the incentives given to scientists, and these effects interact. First, high knowledge spillovers lead firms to … soften incentives when product market competition is high, and to strengthen incentives when competition is low. Second, the … relationship between the intensity of competition and the power of incentives is U-shaped, with the exact shape depending on the …

Can patent protection and product market competition complement each other in enhancing incentives to innovate? In this … 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 …

the opportunity for managerial slack. Consistent with the notion that competition mitigates managerial slack, we find that …, firms in competitive industries experience no significant effect. When we examine which agency problem competition mitigates …

) competition in the development and marketing of the resulting product. The competitive interactions that occur substantially … these interactions. Implementation of the model shows that competition in R&D, in general, not only increases production and …

. The risky arm could potentially lead to a dead end and the safe arm introduces further competition to make firms keep …