We formulate a model that explicitly separates two functions in the innovation process: The introduction of new goods … stable non trivial allocation of labor to production, innovation and entrepreneurship. We compute the steady state allocation … of labor to production, R+D and Entrepreneurship. We show that the innovation rate decreases if one of the innovative …

innovation. Intellectual property rights protection allows the incumbent firms to capture part of the rents of commercial … generate new knowledge. This has a positive impact on entrepreneurship and innovation. However, after some point, further …