We introduce a racing model with multiple product generations, product innovation, spin-outs, and licensing. Industry … conditions and innovation characteristics affect who wins the race and who markets the resulting product. Small firms market …

, and experimental work. All studies deal with the innovation effects of public procurement, that is, the purchase by … governments of goods and services. The idea that public procurement can stimulate innovation originates from the seminal work of … Joseph Schumpeter and Jacob Schmookler, which suggests that innovation is sensible to general demand conditions. However …