innovation market. If employment protection is introduced, firms’ willingness to pay for product or process innovations increases …. This shifts economic activity towards firms specializing in process and product innovation and triggers entry of new start …

by Tobin's q. On the one hand, by increasing job security, EPL spurs innovation effort. Yet that boost only occurs in … firms with little comparative advantage at original innovation. The impact on q is therefore negligible. On the other hand …

countries (Brazil, India, Israel, Nepal, Nigeria, the Philippines, South Korea, the UK, and Zambia), the paper analyses several …