This paper studies the differences in the R&D and innovation behaviour of high-growth firms for 16 EU countries. The results confirm that R&D and innovation are important characteristics for high-growth firms in countries close to the technological frontier, but not for high-growth firms in...

We present evidence that small firms perform two to four times more innovations per dollar of R&D than large firms. We propose a search theory of R&D that accounts for the evidence. A firm incurs R&D expenses until it has discovered a level of R&D productivity that is sufficiently great to...

We show a new way through which patent protection affects innovation. We show that patent protection may reduce the final goods producers' incentives for innovation in industries with imperfectly competitive input markets. The input market structure may play an important role in this respect.

The paper analyzes the profitability of R&D cooperation under asymmetric spillovers. It is shown that a firm prefers R&D competition to RJV cartelization when its own spillover rate is low and the spillover rate of its competitor is high. While it prefers R&D cartelization to RJV cartelization...

I investigate R&D efforts for process innovation in a monopoly with uncertain demand. Two different models are proposed, where either (i) the reservation price is affected by an additive shock and the marginal production cost is increasing, or (ii) a multiplicative shock on the slope of demand...

To spur innovation, the patent protection system grants the patentee limited monopoly power to recoup his R&D investment, although, in general, allowing the use of the public good "innovation" is socially efficient. But patents and patent threats can also be used strategically, e.g. to deter...

Maurer and Scotchmer (2002) pointed out that patents may be inferior to other forms of intellectual property in that the independent invention is not a defence to infringement. The authors' analysis refers to situations in which there is an unlimited number of potential entrants by independent...

This paper compares alternative licensing schemes of a patentor, that is, at the same time, a producer within an industry. The licensing scheme can assume the form of a royalty per unit of output, a fixed fee, or a fixed fee with maximum authorized production. We show that, when the innovation...

This work analyzes the incentives to acquire cost-saving production technologies when cross-participation exists at ownership level. We show that cross-participation reduces the incentives to adopt the cost-saving production technology.

Although regulatory authorities are putting more emphasis to the long-run effects of mergers and acquisitions due to their effects on innovation, several merger proposals have been challenged due to their adverse innovation effects. In a simple model with endogenous R&D investment, we show that...