Creativity and the Family Tree: Human Capital Endowments and the Propensity of Entrepreneurs to Patent In this paper we show that the patenting behavior of creative entrepreneurs is correlated with the patenting behavior of their fathers, which we refer to as a source of the entrepreneurs’ human capital endowments. Our argument for this relationship follows from established theories of developm...

This paper studies the relationship between optimal award and scarcity of ideas in innovation contests. We consider contests with different distributions of idea qualities and conduct comparative static analysis of optimal – revenue maximizing – awards with respect to the distributions. We find that a distribution with scarcer ideas leads to higher optimal awards if the marginal value of innova...

Based on a unique firm-level data set from the German manufacturing sector, this paper disentangles environmental and non-environmental product and process innovations. The multivariate probit analysis shows that the various innovation types are determined by different factors. The estimation results suggest a policy mix which comprises the encouragement of R&D activities, certified management ...

We study how to design an optimal government loan program for risky R&D projects with positive externalities. With adverse selection, the contract involves a high interest rate but nearly zero cofinancing by entrepreneur. This contrasts sharply observed schemes. selection and moral hazard, allowing two levels of effort entrepreneur, policy consists menu at most contracts, one self-financing...

This paper studies how insurance coverage policies impact pharmaceutical innovation. In the United States, most patients obtain prescription drugs through plans administered by Pharmacy Benefit Managers (PBMs). Beginning in 2012, PBMs began refusing to provide for many newly approved when cheaper alternatives were available. We document a shift R&D strategies after this policy took effect: ...

Straipsnyje nagrinėjami veiksniai, darantys įtaką inovacijų diegimui Lietuvos viesbucių versle. Sprendžiama mokslinė problema: kokie diegimo veiksniai aktualiausi Taikant ekspertinio vertinimo ir apklausos metodus atliekamas diegimą lemiancių veiksnių vertinimas. Nustatyti svarbiausi lemiantys veiksniai: rinkos imlumas, materialiniai finansiniai įmonės istekliai. Inovacijų viesbuciuose labiausi...

Innovation by users is now understood to be an important part of innovative activity in the economy. In this paper we explore the implications of adding innovation by users to existing models of social welfare that currently assume innovation by manufacturers only. We find this addition removes several inefficiencies, and that social welfare is likely to be increased by the presence of user inn...

We distinguish standard settlements, in which the status quo is preserved, and injunctive settlements, which prohibit the defendant’s activity. The reverse (payment) settlement is a special type of injunctive settlement. We examine the divergence between private and social incentives to settle and policies that would minimize socially undesirable injunctive and reverse settlements (e.g., bannin...

With reference to Lambertini (2003), Lin (2004) correctly points out that, if R&D efforts for process innovation are endogenous, then process and product R&D are strategic complements. Then, he also proves that the opposite holds when spillovers are nil. Objecting to Lin’s second claim, I show that monopoly profits are everywhere increasing in the extent of information sharing within the firm. ...

We reassess the respective gains from R&D cooperation and competition in a Cournot Duopoly with homogeneous goods, where firms adopt a concave cost-reducing R&D technology. Contrary to the previous literature on the same topic, our main results are that (i) no corner solutions emerge and (ii) cooperation, in the form of either a cartel or a joint venture, is always profitable for firms and (iii...