The extent to which firms respond to labor supply shocks has important implications for local and national economies. We exploit firm-level panel data on product and process innovation activities in the United Kingdom and find that the large, low-skill labor supply (immigration) shock generated...

Diversity of a country is often measured by the amount and spread of nationalities that live there. But also within a country, regions vary in their traditions and culture. Cultural homogeneity within communities is mixed up by (internal) migration, that, like international migration, increases...

The extent to which firms respond to labor supply shocks has important implications for local and national economies. We exploit firm-level panel data on product and process innovation activities in the United Kingdom and find that the large, low-skill labor supply (immigration) shock generated...

The purpose of this paper is to define innovation and to proffer evidence of its existence through the use of statistical method and mathematical modeling. Innovation is defined by the confidence interval of the normal probability distribution density where μ ± 2σ = 0.95 leaving a room of...

Do countries adopt legal rules due to independent, top-down processes, or, do laws spread among nations in a manner that resembles the diffusion of new products and innovations in a social network? We empirically examine this question by employing an influential mathematical model based on...

In case of a product innovation firms start producing a new product. While doing so, such a firm should decide what to do with its existing product after the firm has innovated. Essentially it can choose between replacing the established product by the new one, or keep on producing the...

This paper extends the existing literature on strategic R&D alliances by presenting a model of innovation networks with endogenous absorptive capacity. The networks emerge as a result of bilateral cooperation over time between firms occupying different locations in the knowledge space. Social...

We address the notion of dynamic, endogenous diversity and its role in theories of investment and technological innovation. We develop a formal model of an innovation arising from the combination of two existing modules with the objective to optimize the net benefits of diversity. The model...

In this paper we analyze an inter-temporal optimization problem of a representative firm that invests in horizontal and vertical innovations and that faces a constraint with respect to total R&D spending. We find that there can exist two different steady-states of the economy when the amount of...

Poor productivity performance has been identified as a significant issue for New Zealand, and innovation is seen as a key mechanism for improving productivity growth. Understanding the drivers of firm innovation therefore represents an important step towards improving New Zealand’s economic...