Heterogeneous monopolists produce goods using either brown technology, which relies on labor and carbon energy, or green technology, which relies solely on labor. R&D firms enhance productivity using labor to outcompete existing monopolists, thereby driving economic growth. The extraction of...

Technological change, an overwhelming fact in recent socioeconomic history, involves, as Joseph A. Schumpeter famously put it, "creative destruction" on a large scale: it gives rise to new goods, production methods, firms, organisations, and jobs, while rendering some received ones obsolete. Its...

This paper provides novel empirical evidence on the impact of monetary policy on innovation investment using unique firm-level data. First, we document the effect of a large, systematic monetary tightening (ECB rate increases from 0% to 4.5% during 2022-23), with average firm-level innovation...