In this paper, we analyze the impact of technology transfers and spillovers from inward foreign direct investment (FDI) on the production cost and structure of Canadian industries. Specifically, we: (1) estimate the effects of inward FDI on the cost of production; and (2) examine the impact of...

L'agglomeration spatiale des firmes est un phenomene tres connu de l'economie geographique. Cet article propose une nouvelle explication a ce phenomene : les entreprises mettent en avant la localisation comme le moyen de signaler la qualite de biens nouveaux. Accepter la concurrence en se...

The realisation of the important role that innovation played to a country's well being gave rise to the search for the best business size, capable of producing new products and processes. In this paper, the authors argue for the discarding of the conventional wisdom of Small vs Large and the...

The pharmaceutical industry is unique because of a close connection between knowledge and final product. As the quintessential science-based industry, pharmaceuticals depend heavily on high level manpower and substantial R&D for innovation. Because these requirements are costly, the industry is...

This paper studies vertical R&D spillovers between upstream and downstream firms. The model incorporates two vertically related industries, with horizontal spillovers within each industry and vertical spillovers between the two industries.

A patent provides its holder the monopolist's right to sell licenses that allow the use of new knowledge or an innovation during a certain period of time. The patent holder therefore faces the typical commitment problem of the durable-goods monopolist. This intertemporal consistency problem...

We aim to shed light on the precise way in which an innovation in the field of cell therapy comes about. We develop a non-cooperative bargaining model between two categories of agents who possess scientific information which is a priori different and who have to find an agreement as to the...

The decision to require that countries grant product patents for pahrmaceutical innovations as a condition of membership in the World Trade Organization was very contentious. Almost fifty developing countries were not granting patent monopolies for drugs during the period the Uruguay Round of...

Countries differ in their absolute and relative productivities in doing research across different technologies. They also differ in their propensity to adopt different technologies from abroad. Moreover, technologies may vary in their international mobility. We make use of new data on...