Innovation is key to technology adoption and creation, and to explaining the vast differences in productivity across … and within countries. Despite the central role of the entrepreneur in the innovation process, data limitations have … restricted standard analysis of the determinants of innovation to consideration of the role of firm characteristics. We develop a …

33 Keywords: process innovation, managerial incentives, efficiency, natural experiment Corresponding author … efiort, which is thought to spur innovation, is however non …-contractibleandonceagencyconsiderationsaretakenintoaccounttheefiect of adversity on innovation becomes ambiguous. The reason for this, in the theoretical agency literature, is as follows.2 …