We show that, in the case when innovations are for sale, increased product market competition, captured by reduced … product market profits, can increase the incentives for innovations. The reason is that the incentive to innovate depends on … stricter, but not too strict, merger and cartel policies tend to increase the incentive for innovations for sale by ensuring …

desire of governments to foster risky `breakthrough' innovations. …

desire of governments to foster risky ‘breakthrough’ innovations. …

Many governments promote small businesses for the dual reasons of fostering `break-through' innovations and employment … entrepreneurs market their product themselves. When innovations reduce only the fixed costs of production this leads to a …. When innovations reduce variable production costs, policies to promote small businesses may even be unambiguously harmful. …

Many governments promote small businesses for the dual reasons of fostering ‘breakthrough’ innovations and employment … entrepreneurs market their product themselves. When innovations reduce only the fixed costs of production this leads to a …. When innovations reduce variable production costs, policies to promote small businesses may even be unambiguously harmful. …

desire of governments to foster risky 'breakthrough' innovations. …

We show that, in the case when innovations are for sale, increased product market competition, captured by reduced … product market profits, can increase the incentives for innovations. The reason is that the incentive to innovate depends on … stricter, but not too strict, merger and cartel policies tend to increase the incentive for innovations for sale by ensuring …