This paper analyses some of the factors behind the diverging productivity performances of the US and the EU over the 1990s and develops some conjectures regarding the likely developments for the current decade. The 1990s were characterized by two features the disappearance of the process of...

We consider an R&D-driven endogenous growth model in which innovation is risky and agents are risk averse. Growth is determined by the occupational choice of agents who can either work in production for a wage or become entrepreneurs. In this context, we examine the impact of redistributive...

We construct an endogenous growth model that includes a cultural variable along the dimension of individualism-collectivism. The model predicts that more individualism leads to more innovation because of the social rewards associated with innovation in an individualist culture. This cultural...

We study the relationship between patents and actual product innovation in the market, and how this relationship varies with firms' market share. We use textual analysis to create a new data set that links patents to products of firms in the consumer goods sector. We find that patent filings are...

This working paper reviews recent empirical evidence on large firms and nonproductive strategies that hinder creative destruction and reallocation. The focus is on three types of nonproductive strategies: political connections, nonproductive patenting, and anticompetitive acquisitions. Across...

Technological change is a determining factor in economic growth. Since the 1970s, Brazil has become an example in promoting agricultural research. The result was total factor productivity (TFP) growth. What would be the impact of public policies on productivity growth? The present study sought...

This paper quantifies the determinants of heterogeneity in R&D investment and its implications for growth. Using a panel of Norwegian manufacturing firms we document a negative correlation between R&D intensity and firm size, driven mainly by small firms with high R&D intensity. We estimate a...

This working paper reviews recent empirical evidence on large firms and nonproductive strategies that hinder creative destruction and reallocation. The focus is on three types of nonproductive strategies: political connections, nonproductive patenting, and anticompetitive acquisitions. Across...

We study the relationship between patents and actual product innovation in the market, and how this relationship varies with firms' market share. We use textual analysis to create a new data set that links patents to products of firms in the consumer goods sector. We find that patent filings are...

We examine the contributions of the telecommunications infrastructure to economic growth in the Asia-Pacific Economic Cooperation (APEC) economies during the period from 1982 to 2003 using a modified version of the model developed by Roller and Waverman (2001). Our estimation results show that,...