This paper studies the asset pricing implications of technology spillover, an important externality in innovation. While technology spillover enables firms to produce a variety of products that better satisfy their customers' love for variety, such benefits are procyclical, and investors...

Empirical evidence suggests that investments in research and development (R&D) by older and larger firms are more spread out internationally than R&D investments by younger and smaller firms. In this paper, I explore the quantitative implications of this type of heterogeneity by assuming that...

We show evidence of local spillover effects in corporate innovation productivity. Specifically, we find that firms’ patent counts and patent citations are positively related to the innovation output of other local firms, including those firms in different industries. We rule out exogenous...