We solve an agent's optimization problem of meeting demands for cash over time with cash deposited in bank or invested in stock. The stock pays dividends and uncertain capital gains, and a commission is incurred in buying and selling of stock. We use a stochastic maximum principle to obtain...

A commonly observed two-stage pricing strategy for a custom-made product involves a prepurchase entry fee for a potential consumer and a purchase price if he decides to buy the product. We solve and compare two settings: In the first, the firm does not commit in advance to the second-stage price...

Based on an established theoretical framework of the drivers of inventive performance, the so-called KSAO (Knowledge, Skills, Abilities, and Other) factors, this paper seeks to explain empirically the performance of inventors throughout their careers. We combine survey information spanning the...

We investigate the causal effect of patent rights on cumulative innovation, using large-scale data that approximate the patent universe in its technological and economic variety. We introduce a novel instrumental variable for patent invalidation that exploits personnel scarcity in post-grant...

This paper employs data from an extensive European survey to produce one of the first systematic assessments of the private economic value of patents. The estimated mean of our patent value distribution is higher than 3 million Euros, the median is about one-tenth, and the mode is around a few...

We investigate the causal effect of patent rights on cumulative innovation, using large-scale data that approximate the patent universe in its technological and economic variety. We introduce a novel instrumental variable for patent invalidation that exploits personnel scarcity in post-grant...

Based on an established theoretical framework of the drivers of inventive performance, the so-called KSAO (Knowledge, Skills, Abilities, and Other) factors, this paper seeks to explain empirically the performance of inventors throughout their careers. We combine survey information spanning the...

On behalf of the German Federal Government, the Commission of Experts for Research and Innovation presents its second report. This was originally intended to be a “short” report, in which the key indicators of research and development were up-dated and commented on. However, the Expert...

Research and innovation are extremely important for Germany. New insights are generated by research, and new ways of creating value are opened up by technical, organisational, and other innovations. Production, value-creation and employment tend to increase much more in companies which are...