This paper analyzes the effect of innovation clusters on the adoption of a gen- eral purpose technology (GPT) and on firms R&D investment levels in im- perfect information situation. To do this, we developed a theoretical model of vertical relation, described as a four-step game between an...

This study develops a general equilibrium model within which self revelation of ability - that is not accompanied by any signaling - is compatible with arrival at rational expectations equilibriums (REE). In the model, economic agents either are 'confident', 'overconfident', or 'under-confident'...

This study examined the influence of managerial ability on corporate innovation performance. Our findings suggest that higher levels of managerial ability significantly enhance an enterprise's innovation performance, while managerial risk taking has the potential to not only inhibit the...

We view innovation investment as a real option and explore the implications of ambiguity (Knightian uncertainty) and risk for innovation decisions. Our analysis uses a risk measure and a new outcome-independent measure of ambiguity. We find a consistently significant negative effect of ambiguity...

Always, anytime, we speak about innovation, that it occurs in our live, firms, countries and regions.The innovation is very important for survive of any firm, any entrepreneur, any country and any region in world market due to their speed evolution.This paper has as objective to approach the...

In this study, the sole rational implementation of risk sharing is shown to require simultaneity of the presence, in markets of each of safe, high risk, and low risk assets. In context of the said implementation, market efficiency - which yet may deteriorate or improve - is optimized by searches...

What are the long-run aggregate effects of monetary shocks displaying throughthe credit channel of monetary policy? We address this question by investigatingthe transmission mechanism and estimating the dynamic behaviour of variablesrelated to credit and innovation. Then, we develop a DSGE model...

I study how limited information and ex-post evaluation by third parties affect how regulators design approval rules for innovations. I consider a model in which the regulator designs approval rules to minimize criticism for approval errors and for imposing a costly approval process on innovating...

We develop an agent-based macroeconomic model in which product innovation is the fundamental driver of growth and business cycle fluctuations. The model builds on a hedonic approach to the product space and product innovation developed in Georges (2011)

Deadlines are common in product development and are often felt to be too harsh - many development efforts are still worth continuing at the time of mandated termination. We examine the value of deadlines from the agency-theoretic perspective. We consider a firm that pays an agent to lead product...