Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … endogenous growth model with size-contingent regulations. We apply this to population administrative firm panel data from France … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …

Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … endogenous growth model with size-contingent regulations. We apply this to population administrative firm panel data from France … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …

which governments shape innovation, and dwarf all other public subsidies for innovation. We examine the impact of government … from OECD countries and firm level data from France. To deal with the potentially endogenous allocation of government R …