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I model an innovation game in which firms can choose to be leaders or followers. Internal finance leads to a stalemate … in which each firm wants to free-ride on the others' experimentation costs. Therefore, no innovation occurs. When instead … firms compete in the capital markets to finance innovation (e.g., in the case of venture capital) there is an endogenous …
Persistent link: https://www.econbiz.de/10013114638
I model an innovation game in which firms can choose to be leaders or followers. Internal finance leads to a stalemate … in which each firm wants to free-ride on the others' experimentation costs. Therefore, no innovation occurs. When instead … firms compete in the capital markets to finance innovation (e.g., in the case of venture capital or IPOs) there is an …
Persistent link: https://www.econbiz.de/10013037089
government ownership of banks have increased the likelihood of a currency crisis. Financial innovation has contributed to the …
Persistent link: https://www.econbiz.de/10010729643
the implementation of a patent innovation, e.g., a license fee for a contract with the patentee in Economy B. The office …
Persistent link: https://www.econbiz.de/10014080884
Informational frictions between borrowers and lenders differ across classes of borrowers. Innovative firms undertake high-risk-high-return projects which are likely to be little understood by financial intermediaries. As a consequence, they may end up allocating too large a share of funds to...
Persistent link: https://www.econbiz.de/10005123591
This paper analyses the influence of in-house R&D and external knowledge acquisition on the total factor productivity (TFP) of listed Chinese firms for the time period 2001-2010. We find a quantitatively important positive effect of in-house R&D. The achieved level of technological...
Persistent link: https://www.econbiz.de/10010337198
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