We propose an empirical strategy for estimating competition in innovation markets based on a model of creative-destruction. Our method relates firms’ market return on equity to information about patent citation patterns. Two innovations we introduce are using daily abnormal stock returns...

While most economists believe that public scientific research fuels industry innovation and economic growth, systematic evidence supporting this relationship is surprisingly limited. In a recent study, Acemoglu and Linn (2004) identified market size as a significant driver of drug innovation in...

This paper investigates the impact of scientific relatedness on knowledge dynamics in biotech at the city level during the period 1989–2008. We assess the extent to which the emergence of new research topics and the disappearance of existing topics in cities are dependent on their degree of...

Biotechnology firms operate in a high-risk and high-reward environment and are in a constant race to secure venture capital (VC) funds. Previous contributions to the literature show that the VC firms tend to invest locally in order to monitor their investments and to provide operating assistance...

We examine how R&D portfolios of drug pipelines affect pharmaceutical licensing, controlling firm size, diversity, and competition. The data collected comprises 434 license-ins and 329 license-outs closed by 54 Japanese pharmaceutical companies between 1997 and 2007. We pay special attention to...

Technological imitation may play a crucial role in motivating firms to innovate. However, theoretical predictions and empirical findings on the role of imitation have not yet reached a consensus. One major gap in the previous studies is that the empirical tests are based on samples consisting of...

Mobile money innovations are expanding rapidly in developing countries, where they appear to be on track to extend financial services to billions of unbanked populations. However, adoption rates differ significantly across countries, and the success of innovations is radically different within...

Prior research argues that USPTO first-action allowance rates increase with examiner seniority and experience, suggesting lower patent quality. However, we show that the increased use of examiner's amendments account for this prior empirical finding. Further, the mechanism reduces patent...

This paper examines the intertemporal returns of patented inventions using estimates of patent value obtained from German employee inventors’ compensation records. The paper finds heterogeneity in the mean age and dispersion of the annual returns by technology and cumulative patent value....

Many eco-innovations have been linked to technical change in the ICT domain. Leveraging the distinctive features of general purpose technologies, ICT have the potential to steer green growth and to help decouple this growth from ecological damage. The paper aims to shed light on innovation...