This paper examines the patenting behavior of firms in an industry characterized by rapid technological change and cumulative innovation. Recent survey evidence suggests that semiconductor firms do not rely heavily on patents to appropriate the returns to R&D, despite the strengthening of US patent rights in the early 1980s. Yet the propensity of semiconductor firms to patent has risen dramatic...

We introduce a computational model of the evolution of a research-based pharmaceutical firm and parameterize it using existing estimates of R&D costs, profit distributions, and candidate attrition rates. We use the model to estimate how the probability of continuously covering the capitalized costs of R&D from new product revenues depends on R&D scale. In the model, even small reductions in pro...

This paper analyzes the question: what does it take for science parks and technology districts to evolve and grow? We propose an analytical framework to examine the gestation, evolution and sustainability of science parks and related but broader regional phenomena such as technology districts. The framework comprises three aspects of a science park’s development: growth mechanisms, level of tec...

The 1991 Credit Lyonnais court ruling expanded the fiduciary duties of managers towards debtholders in near-insolvent Delaware firms. Differences-in-differences tests reveal that innovation efficiency increased among all Delaware firms following the ruling. Further, Delaware firms close to (far from) insolvency reduced (expanded) their R&D expenditures and innovation output. Both sets of firms ...

It has been demonstrated that a complex division of labor provides for the diversity of knowledge that is critical for organizational innovation and productivity [Hage, J., 1999. Organizational innovation and organizational change. Annual Review of Sociology 25, 597–622]. This article examines the impact of complexity in an R&D setting and adopts the approach that collaborative research involve...

This paper presents an endogenous growth model in which some firms devote resources to developing higher quality products (innovative R&D) and other firms devote resources to copying these products (imitative R&D). Although consumers benefit from the knowledge created by both types of R&D activities, only innovative R&D subsidies lead to faster economic growth and imitative R&D subsidies actual...

A transition toward a sustainable circular bioeconomy requires drastic changes across broad range of industries and their stakeholders. The current slow pace with which society tries to avert the transgression critical thresholds planetary system is worrying. However, historical case shipping industry in 19th century shows how suddenly whole can change after long period low innovation activity ...

The literature on corporate governance has highlighted the importance of board characteristics related to firm innovation. However, empirical findings have not been totally conclusive, and some seem contradictory. Adopting a new perspective, we tried help resolve puzzle using meta-analysis that integrates from 96 previous studies analyze relationship between attributes, grouped by their relatio...

We formulate and test a hypothesis for the dramatic restructuring that the plant breeding and seed industry has recently undergone: the reorganization can be explained in part by the desire to exploit complementarities between intellectual assets needed to create genetically modified organisms. This hypothesis is tested using data on agricultural biotechnology patents, notices for field tests o...

Through the interaction between financial constraints and R&D, I study two assetpricing puzzles: mixed evidence on the financial constraints–return relation and the positive R&D-return relation. Unlike capital investment, R&D is more inflexible. A financially constrained R&D-intensive firm is more likely to suspend/discontinue R&D projects. Therefore, R&D-intensive firms’ risk increases with th...