. After linking these ideas to the induced innovation literature of the 1960s and the more recent directed technological …

It follows from Hicks' induced innovation hypothesis that rising energy prices in the last two decades should have … induced energy-saving innovation. We formulate the hypothesis concretely using a product-characteristics model of energy … innovation. Through estimation of characteristics transformation surfaces, we find that technological change reduced the total …

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 …

Building on recent advances in the literature on knowledge creation and innovation (notably Carnehl and Schneider (2025 …

Is financial innovation necessary for sustaining economic growth? To address this question, we build a Schumpeterian … innovation: they can invent better methods for screening entrepreneurs. Second, every screening process becomes less effective as … technology advances. The model predicts that technological innovation and economic growth eventually stop unless financiers …

must be adapted. In such a country, local saving matters for innovation, and therefore growth, because it allows the … innovation project, so local saving does not matter for growth. In our empirical exploration we show that lagged savings is …