Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …. We then quantitatively fit the parameters of the model to the data, finding that innovation at the macro level is about 5 …

-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by …-and-neck. All these results are consistent with the predictions of step-by-step innovation models …

innovative activities of German service firms. We investigate whether firms that receive public subsidies for innovation projects … innovative activities. The more grants a firm has received in the past, the more it invests in current innovation projects …

This paper analyses the impact of public innovation subsidies on private innovation expenditure. In the empirical … their innovation effort when participating in public policy schemes. Cross-sectional data at the firm level are used to …

How does firm entry affect innovation incentives and productivity growth in incumbent firms? Micro-data suggests that … threat spurs innovation incentives in sectors close to the technological frontier--successful innovation allows incumbents to … prevent entry. In laggard sectors it discourages innovation--increased entry threat reduces incumbents' expected rents from …