Cellini, Roberto; Lambertini, Luca; Sterlacchini, Alessandro - Volkswirtschaftliche Fakultät, … - 2009
We study the product and process innovation choice of firms in which a managerial incentive à la Vickers (1985) is … present. Taking a two-stage dynamic game approach, we show that managerial firms are led to over-invest in process innovation …, as compared to standard profit-maximising firms, while they under-invest in product innovation. The reason is that …