Innovation and technology absorption are now firmly recognized as one of the main sources of economic growth for emerging and advanced economies alike. That is why innovation is seen as a possible catalyst for revitalizing post-transition economies hit hard by the recent financial and economic...

This book builds on the lessons from public institutions and programs to support innovation, both successful and failed, from Europe and Central Asia (ECA) as well as China, Finland, Israel, and the United States. Field visits to these countries were hosted by the innovation and scientific...

This paper introduces a general equilibrium model of endogenous technical change through basic and applied research. Basic research differs from applied research in the nature and the magnitude of the generated spillovers. We propose a novel way of empirically identifying these spillovers and...

Technological progress is typically a result of trial-and-error research by competing firms. While some research paths lead to the innovation sought, others result in dead ends. Because firms benefit from their competitors working in the wrong direction, they do not reveal their dead-end...

Innovation is typically a trial-and-error process. While some research paths lead to the innovation sought, others result in dead ends. Because firms benefit from their competitors working in the wrong direction, they do not reveal their dead-end findings. Time and resources are wasted on...