Business innovation is an important driver of productivity growth. In this paper, I assess the importance of R&D and ICT investment for firm performance in the manufacturing and service industries. Explicitly, I use an extended version of the CDM model that treats ICT together with R&D as the...

It is often claimed that the opportunities to create new manufacturing jobs in open, high-cost economies such as Norway, are concentrated in products which are technologically advanced and knowledge intensive. This paper examines the relationship between job creation and innovation, as measured...

We analyze how knowledge spillovers influence the optimal timing of R&D policy. Using numerical simulations we find that optimal subsidies to R&D may be rising over time even when the returns to knowledge is decreasing. The optimal time profile of the subsidies is determined by the elasticity of...

This paper examines whether the welfare gains from technological innovation that reduces future abatement costs are larger or smaller than the “Pigouvian” welfare gains from optimal pollution control. The relative welfare gains from innovation depend on three key factors - the initially...

This paper examines whether the welfare gains from technological innovation that reduces future abatement costs are larger or smaller than the “Pigouvian” welfare gains from optimal pollution control. The relative welfare gains from innovation depend on three key factors: the initially...