with production. In the model, technological progress is endogenously driven by R&D investment and is composed of two parts … productivity of physical investment and is embodied in new tangible capital (e.g., structures and equipment). The model breaks the … cases quantitatively well-documented empirical regularities: (i) the positive relation between R&D investment and the …

&D investment from Chinese regulations regarding technology exports revised in 2008. We document that these technology export … restrictions (TERs) decrease a firm's R&D investment. Specifically, the TERs reduce corporate R&D investment by 114 percent … investment and the number of firms' patent applications. Overall, TERs prevent firms from investing in innovation projects. Hence …

-goods producers drops during recessions. We then develop a model of lumpy investment with heterogeneous firms and endogenous … equilibrium feedback accounts for the observed comovement between investment and innovation, provides a powerful propagation …