This paper investigates the effect of (potential) market size on entry of new drugs and pharmaceutical innovation …

innovations—innovations that break new ground in terms of knowledge creation. After presenting a motivating model focusing on the … choice between incremental and radical innovation, and on how managers of different ages and human capital are sorted across … consistent with this pattern. Our measures of creative innovations proxy for innovation quality (average number of citations per …

This paper studies a simple model of experimentation and innovation. Our analysis suggests that patents may improve the … allocation of resources by encouraging rapid experimentation and efficient ex post transfer of knowledge across firms. Each firm … project to implement. A successful innovation can be copied by other firms. Symmetric equilibria (where actions do not depend …