This paper analyzes the impact of R&D subsidies on incumbent firms to introduce new goods. We are especially interested in investigating various consequences of government subsidies for R&D, provided to firms that offer products of different qualities. This study examines the incentives of incumbent firms to introduce new products of various quality, their prices, as well as the product variety...

We analyze an economy where firms undertake both innovation and adoption of technologies from the world technology frontier. The selection of high-skill managers and firms is more important for innovation than for adoption. As the economy approaches the frontier, selection becomes more important. Countries at early stages of development pursue an investment-based strategy, which relies on exist...

One feature of the European patent system that is heavily criticized nowadays is related to its complex fragmentation and the induced cost burden for applicants. Once a patent is granted by the EPO, the assignee must validate (and often translate) it and pay the renewal fees to keep it in force in each country in which the applicant seeks protection. The objective of this paper is to assess to ...

Implementation of electricity reform has coincided with a significant decline in energy R&D activities. Technical progress is crucial for tackling many energy and environmental issues as well as for long-term efficiency improvement in the sector. This paper reviews the industrial organisation literature on innovation to explore the causes of the decline in energy R&D spending and shows that it ...

We describe the construction of a large and novel data set on R&D collaboration networks in the first five EU Framework Programmes (FPs), examine key features and provide economic interpretations for our findings. The data set is based on publicly available raw data that presents numerous challenges. We critically examine the different problems and detail how we have dealt with them. We describ...

Innovation is becoming more and more important as a driver of economic growth. In developed countries, a diverse set of innovation indicators has been developed to monitor innovation performance and the impact of innovation policies. Developing countries have been late to jump on this bandwagon and are now faced with a set of well‐established innovation indicators that might not be that well su...

The study investigates how openness influences information and communication technology (ICT) penetration for improved government quality in sub-Saharan Africa for the period 2000-2012. Openness is measured in terms of trade and financial globalisation whereas ICT is proxied with mobile phone and internet penetration rates. Ten bundled and unbundled governance indicators are used. The empirical...

Proponents of the Bayh-Dole Act argue that industrial use of federally-funded research would be reduced without university patent licensing. Our survey of U.S. universities supports this view, emphasizing the embryonic state of most technologies licensed and the need for inventor cooperation in commercialization. Thus, for most university inventions, there is a moral hazard problem with invento...

During the 1980's, Microelectromechanical Systems (MEMS) emerged as a new technological paradigm in the United States. From early on, some Japanese private companies, who had already been engaged in a fierce technology race to develop semiconductors, decided to engage their R&D efforts in this new field. A new concept Micromachine, extending that of MEMS, was introduced in Japan in 1988, and si...

In Capitalism, Socialism and Democracy Joseph A. Schumpeter concluded that socialism would eventually displace capitalism in Western democracies. This would come about as a result of the superior performance of capitalism. We extract six ”stylized” propositions that are essential elements of Schumpeter’s prediction about the fate of capitalism. These propositions are confronted with the develop...