There is great interest in evaluating the impact of private equity investments on innovation and economic growth …. However, there is no direct empirical evidence on the effects of such transactions on the innovation strategies of … Business Innovation Research (SBIR) program research awards. We find that SBIR firms attracting private equity investments are …

. Large firms may find it disadvantageous to engage in an "R&D race" with small firms, as they can obtain access to innovation … through acquisition. Our model and evidence show that the R&D responsiveness of firms increases with demand, competition and …

more likely to hold than its intensive margin counterpart. Specifically, it is demonstrated that Where duopoly competition … oligopolistic competition with a collusive fringe, and predatory entry. We also provide a theoretic foundation for the use of a …

reduce costs through either internal investment in building capital or through mergers. The model, which we solve … computationally, allows firms to invest or propose mergers according to the relative profitability of these strategies. An antitrust … authority is able to block mergers at some cost. We examine the optimal policy when the antitrust authority can commit to a …

commitment, shows how structured price commitments restore competition, and analyzes whether price commitments are likely to …