We present a model of endogenous firm growth with R&D investment and innovation as the engine of growth. The objective of our analysis is to present a framework that can be used for microeconometric analysis of firm performance in high-tech industries. The model for firm growth is a partial...

Firms’ research and development (R&D) investments are sources of positive externalities, thus justifying innovation policies based on a mix of R&D subsidies, tax credits and intellectual property rights. All those measures represent a way to encourage companies which invest in R&D by rewarding...

TIME HORIZONS AND TECHNOLOGY INVESTMENTS -- Copyright -- Preface -- Contents -- Executive Summary -- 1 The Issue and the Approach -- THE APPROACH AND METHOD OF THE STUDY -- DO U.S. CORPORATE EXECUTIVES HAVE SHORT TIME HORIZONS? -- MACROECONOMIC EVIDENCE: RELATIVE RATES OF INVESTMENT IN FIXED...

We present a model of endogenous firm growth with R&D investment and stochastic innovation as the engines of growth. The model for firm growth is a partial equilibrium model drawing on the quality ladder models in the macro growth literature, but also on the literature on patent races and the...