An innovation-diffusion model was developed with agent-based modelling (ABM); the model is used to study technical innovation and its diffusion process in China. The results are as follows: only a small fraction of firms conduct independent product-innovation, and most firms prefer imitation and/or purchases; most of the innovative firms are located in the East; approximately three or four tech...

This paper explains market turbulence, such as the recent dot-com boom/bust cycle, as equilibrium industry dynamics driven by the synergy between new and existing technologies. When a major technological innovation arrives, a wave of new firms implement the innovation and enter the market. However, if the innovation complements existing technology, some new entrants later will be forced out as ...

Measuring Cultural Diversity and its Impact on Innovation: Longitudinal Evidence from Dutch Firms To investigate econometrically whether cultural diversity of a firm’s employees boosts innovation, we create a unique linked employer‐employee dataset that combines data from two innovation surveys in The Netherlands with administrative and tax data. We calculate three distinct measures of diversit...

In this article, we explore the Covid-19 crisis through lens of innovation. We focus on threat and opportunity drivers innovation, some their product/service process outcomes. contribute to innovation theory practice by suggesting that there are two categories during multi-level crises, such as a pandemic: (1) reactive, threat-driven innovations created contain respond organizational problems d...

This paper examines the effects of firm-level innovation in carbon-abatement technologies on optimal cap-and-trade schemes with and without price controls. We characterize optimal cap-and-trade regulation with price cap and price floor, and compare it to the special cases of pure taxation and simple emissions cap. Innovation shifts the tradeoff between priceand quantity-based instruments toward...

This paper studies product innovation and firm survival in the U.S. ATM/debit card industry. The industry started with a few shared ATM networks in the early 1970s. The number of networks grew quickly up until the mid 1980s, but then declined sharply. We construct a theoretical model based on Jovanovic and MacDonald (1994). In contrast to their model focusing on cost-saving technological innova...

Innovating in downturns can affect corporate success because it improves a firm’s position relative to competitors during the recovery period. However, increased uncertainty and more binding financial constraints complicate such innovation activity. I find that past experience with innovation during recessions improves a firm’s ability to invest in R&D when a new downturn hits. This result hold...

Innovation plays a crucial role in improving firm's performance. The relationship between innovation and productivity has been widely analysed during this decade across countries industries, generating important new findings. This study aims to provide an overall literature review on the of firms obtain comprehensive overview changing productivity. By reviewing existing empirical evidence, one ...

Ever since its introduction in the 1990s, the systems of innovations (SI) concept has received a great deal of attention from researchers and politicians. The systems of innovation policy (SIP) approach, which is based on the SI concept, is considered an alternative to neoclassical theory. Its goal is to provide new rationales and criteria for innovation policy, as well as concrete implications...

We examine exogenous changes in state corporate income taxes over the 1988-2006 period and find that tax decreases significantly boost both the quantity, measured by the number of patents, and the quality, measured by citations per patent, of innovative output, while tax increases have little impact on innovation. Most of the impact of tax changes on innovation occurs two or more years after th...