Contrary to most of the literature, which focuses only on the level of investment in innovation, this paper examines …

, competitive pressure in the ensuing innovation race induces firms to launch innovations too early, thereby raising the likelihood … punitive damages instead of mere compensation of harm caused, in order to decelerate such welfare-reducing innovation races …

affect firms' innovation strategy choices, concretely, whether to abstain from innovation, to introduce products that are … known in the market but new to the firm (imitation) or to introduce market novelties (innovation). Using a sample of 1253 … effectiveness is low or medium, both innovation and imitation are enhanced, whereas if it is high, only innovation is enhanced. …

Using a dynamic model of a step-by-step innovation race between financially constrained firms, I study how financial … constraints affect innovation activity. The novel theoretical results derive from an analysis of the interaction between the … incentive effect of competition on innovation and the effect competition has on the degree of credit rationing. I find that the …

learningbydoing and organizational forgetting in R&D on firms' incentives to innovate. A dynamic step-by-step innovation model with … allows followers to catch up. Contrary to the benchmark case the leader's innovation effort declines with the lead. This …

Both mergers and innovation are central elements of a firm?s competitive strategy. However, model-theoretical analyses … of the merger-innovation link is sparse. The aim of this paper is to analyze the impact of mergers on innovative …

We examine the implication of direct and indirect foreign competition on domestic innovation decision. In most of the … innovation by the home firm will be discouraged at high tariffs under the threat of DFI. Again at low tariff rates exports by the … foreign firm make market competition more intense and reduce the incentive for innovation. Hence the home firm always (never …

growth. In this paper we study the effects of tax and subsidy policies on entrepreneurs’ choice of riskiness of an innovation … project and on their mode of commercializing the innovation (market entry versus sale). Limited loss offset provisions in the … fundamental policy trade-off between the declared goals of promoting employment and innovation in small, entrepreneurial firms …

The standard innovation race specification assumes a memoryless exponential distribution for the time to success of an … cooperative R&D in terms of innovation effort, consumer surplus, and net social welfare. …

differentiation is endogenously determined by firms' strategic investments in product innovation. Consumers seek variety and product … innovation is more skill intensive than production. Greater import competition increases innovation incentives, and thereby the …