defend their monopoly position and prevent innovation and entry of high-quality competitors. This requires that the incumbent … quality upgrade related to innovation. Consistently with our empirical findings, the model delivers a negative association …

This paper investigates the connection between resource abundance and innovation, as a transmission mechanism that can …, consumers trade off leisure versus consumption, and firms trade off innovation efforts versus manufacturing. For this model, we … indirectly by inducing a smaller proportion of the labor force to engage in innovation. …