This paper provides evidence that venture capital (VC) syndication creates value for entrepreneurial firms in two dimensions. First, VC syndication creates product market value for their portfolio firms. Specifically, VC syndicates invest significant amounts in younger firms, in earlier...

Will we ever see the day when the Internet serves as the primary venue for problem solving and dispute resolution? Social science research suggests that our online communication skills will improve as we learn relational behaviors based upon nonverbal cues available online. Dispute resolution...

Medical process patents, which protect intellectual property in medical and surgical procedures, threaten to complicate medical practice, increase health care costs, and restrict access to therapeutic and diagnostic modalities. Few countries allow such patents, but they have been granted in the...

In this paper, we argue that lower prices for pharmaceuticals can be achieved by fostering a new type of competition in the pharmaceutical industry. Lower drug development costs, and hence prices, can be brought about by abolishing national drug administrations and replacing them with private...

This paper looks at four arguments which Microsoft has used to justify the claim that illegal copying of software is wrong: software piracy is theft; software piracy violates the rights of copyright holders; software piracy is free riding; and software piracy reduces incentives to future...

In this paper we investigate the effect of local banking development on firms' innovative activities, using a rich data set on innovation for a large number of Italian firms over the 1990's. There is evidence that banking development affects the probability of process innovation, particularly...

The present study examines the importance of Schumpeterian profits in the United States economy. Schumpeterian profits are defined as those profits that arise when firms are able to appropriate the returns from innovative activity. The paper derives the underlying equations for Schumpeterian...

Most of the empirical literature on the relationship between firm value and knowledge capital is based on the stock market valuation. We use a credit rating score as an alternative measure. Innovative firms with a reasonable knowledge stock achieve a better rating, whilst too many innovative...

For a few years now, nanotechnology has been recognised as a promising new growth innovator. This leads to a shift from the exploration of nanotechnology knowledge towards a phase of exploitation. The coming years this commercialisation of nanotechnology will be extended. Nanotechnology is a...

The centrality of corporate enterprises for allocating resources in the economy has sparked the recent debate among economists about the manner in which corporations should be governed to enhance economic performance. The process through which resources are developed and utilised is central to...