We develop an endogenous growth model to study the long run consequences of offshoring with firm heterogeneity and incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm's production chain between a home upstream division and a foreign downstream one....

Many high technology goods are based on standards that require access to several patents that are owned by different IP holders. We investigate the royalties chosen by IP holders under different market structures. Vertical integration of an IP holder and a downstream producer solves the double...

We investigate the effect of profit-sharing on product and process innovation. Profit-sharing is a credible commitment of the companies to let the employees participate in any efficiency gain. Resistance against technical progress becomes less plausible. Moreover, employees are stimulated to...

The imperfect appropriability of revenues from innovation affects the incentives of firms to invest, and to disclose information about their innovative productivity. It creates a free-rider effect in the competition for the innovation that countervails the familiar business-stealing effect....

This paper is based on the acknowledgment that NK models are an extremely useful tool in order to represent and study the complexity stemming from interactions among components of a system. For this reason NK models have been applied in many domains, such as Organizational Sciences and...

This paper analyzes whether firms conducting internal R&D and acquiring external high-tech equipment experience a complementarity effect. For German CIS data we conduct a complete set of indirect and direct complementarity tests refining the analysis by looking at various types of innovations...

Even though smalland mediumsized firms (SMEs) were believed not to proceed beyond exporting in their internationalization routes, we can observe new types of cooperation intensive entrepreneurial firms, so-called "micromultinational enterprises" (mMNEs), entering the global landscape. These...

Services are characterised by the integration of customers while the service is produced. This integration leads to interruptions in the processing of a customer order until the customer provides the missing input. Since customer behaviour can be planned to a certain extent only challenges in...

Who's your city? For companies in the developing world, this question determines their market sizes, access to innovative ideas, regulatory environment and proximity to innovative staff. In this brief, we identify the most attractive metropolitan areas to locate in to sell in emerging markets....

If producers have more information than consumers about goods' attributes, then they may use non-price (rather than price) adjustment mechanisms and, consequently, the market may reach a new equilibrium even if prices don't change. We study a situation where producers adjust the quantity per...