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Technology innovations continue to be one of the greatest drivers of economic growth. Realizing the value of such … innovations, however, requires substantial follow-on investments in development and commercialization. The value of these … obtaining outside financing for these investments. In this paper, we explore how licensing contracts can both dissuade other …
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This paper presents a model of cumulative innovation where firms are heterogeneous in their research ability. We study the optimal reward policy when the quality of the ideas and their subsequent development effort are private information. The optimal assignment of property rights must...
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