We provide a theoretical justification for bi-sourcing, which refers to thesituation where a final goods producer buys an input from an outside supplier and alsoproduces it in-house. Bi-sourcing occurs if the marginal cost of producing the input inhouseis higher than the marginal cost of outside...

This paper provides a systematic empirical analysis of the effects of merger and acquisitionactivity on profitability and firm level employee remuneration in the United Kingdom, using a speciallyconstructed database for the period 1979-1991...

An important discussion in recent years is the introduction of product patentsand the abolition of process patents. In a model with endogenous number of innovatingfirms, we show that whether product patent increases R&D is ambiguous, and depends onthe type of market demand and the cost of R&D....

We show the effect of patent protection on R&D investment in presence of‘inventing around’ (or imitation) and technology licensing...