This paper studies the nature and consequences of competition in R&D and the relationship between this form of competition and competition in the product market, by focusing on comparisons of speed of research, number of independent research laboratories, and the level of risk undertaken. Among...

After long suffering from benign neglect if not outright contempt, industrial policy is almost fashionable again. The global financial and economic crisis known as the Great Recession has forced researchers and policy makers to confront the reality that market forces alone generally do not lead...