Perspective: Encourage the innovators

Rewarding Duopoly Innovators: The Price of Exclusivity∗

We study an environment where a duopoly develops innovations that build on one another. The quality of innovations is private information, so optimal rewards take the form of rights to produce the resulting products. There is a tradeo between encouraging one rm to work on its innovations by granting it promised rights, and the fact that those rights deteriorate the rights of its competitors. We...

Serial innovators in the markets for technology

Serial innovators are long-lived, small firms with a substantial, public record of innovative success. This paper argues that such firms are often specialist suppliers of technology. We draw on Arora, Fosfuri and Gambardella's framework concerning markets for technology to explain the patenting characteristics of these firms. We find that the firms produce technology that in comparison to large...

Does Market Selection Reward Innovators ?

Are complex innovators more persistent than single innovators ? An empirical analysis of innovation persistence drivers

This paper examines the persistence of innovation behaviour at the firm level (manufacturing and services sectors). We attempt to answer the question: does being successful in past innovation activities increase the probability of being successful in current innovation activities? We contribute to the literature by explicitly distinguishing between single and complex innovation strategies. Usin...

Tax Incentives to Encourage

Much has been said about the importance of innovation, especially after the rise of globalization and implementation of more open markets. In this paper, we will show how innovation is linked to schools of thoughts that sought to explain and understand what would lead nations to reach a certain degree of long-term development, since the model of Joseph Schumpeter in the mid-1930s until Romer’s ...