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This paper models the interactions among technological innovation, product market competition and information leakage via the stock market. There are two firms who compete in a product market and have an opportunity to invest in a risky technology either early on as a leader or later once stock...
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There is considerable interest in understanding how important market frictions are in stifling the transmission of ideas from one firm to another. Although the theoretical literature emphasizes the importance of these frictions, direct empirical evidence on them is limited. We use comprehensive...
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.g., chains. Accordingly, we propose, model and test an alternative theory, one in which HQ facilities market-like dynamics … managers, ours involves an invisible hand of managers. We construct an interacting agent model of the theory, which yields … setting (consistent with the argument motivating the need for an additional theory) …
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This research sheds light on the role of product scope on the innovation activity of multinational multi-product firms. We use patent citation data to break down innovation into two types by measuring the degree to which innovation performed by firms is fundamental and the extent to which the...
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