This paper studies the asset pricing implications of technology spillover, an important externality in innovation. While technology spillover enables firms to produce a variety of products that better satisfy their customers' love for variety, such benefits are procyclical, and investors...

This paper summarizes the results of several research studies conducted by the Micro-economic Analysis Division of Statistics Canada that investigate the impact of advanced technology use on business performance. These studies combine establishment-level survey data on advanced technology...

This paper constructs a theory of industry growth through innovation and selection- driven creative destruction. Firms' ideas determine their productivity and stochasti- cally evolve over time. Firms innovate to improve their ideas and endogenously exit if unsuccessful. Entrants adopt the ideas...

We analyze the adoption of green technology in a dynamic economy affected by random shocks where demand spillovers are the main driver of technological improvements. Firms' beliefs and consumers' anticipations drive the path of the economy. We derive the optimal policy of investment subsidy and...

This paper studies the impact of the first joint licensing platform for patented drugs, the Medicines Patent Pool, on global drug diffusion and innovation. The pool allows generic firms worldwide to license drug bundles cheaply and conveniently for sales in a set of developing countries. I...

Paying with a mobile phone is a cutting-edge innovation transforming the global payments industry. However, some advanced economies like the U.S. are lagging behind in mobile payment adoption. We construct a dynamic model with sequential payment innovations to explain this puzzle, which uncovers...

Many new technologies display long adoption lags, and this is often interpreted as evidence of frictions inconsistent with the standard neoclassical model. In this paper we study the diffusion of the tractor in American agriculture between 1910 and 1960 – a well known case of slow diffusion...

I investigate the long-run implications of trade and technology diffusion through trade, when firms are heterogeneous and trade is costly. The paper integrates firm heterogeneity and trade into product innovation growth models from endogenous growth theory. Two specifications of the R&D process...

The importance of innovation for the economic performance of industrialized countries has been largely stressed recently by the theoretical and empirical literature. Moreover the intensity of knowledge externalities in generating innovation, is the key parameter in determining sustained growth...

This paper identifies over 50 000 patents filed worldwide in various water-related adaptation technologies between 1990 and 2010, distinguishing between those related to water availability (supply) and water conservation (demand) technologies. The paper then analyses the innovation activity –...