innovation and international technology transfer in general. The literature suggests that patent protection in a host country … encourages technology transfer to that country but that its impact on innovation and development is much more ambiguous. We then … externalities, implies that IP may not be the ideal and cannot be the only policy instrument to encourage innovation in this area …

Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …. We then quantitatively fit the parameters of the model to the data, finding that innovation at the macro level is about 5 …